FARE ACT; FAIR?

As we know as of last month all landlords in NYC are now responsible for paying broker fees. A lot of brokers and or landlords have been against it along with REBNY and are still now trying to reverse the ACT.

This act has changed the rental game for the city. Renters of course are thankful for it.

So is the FARE ACT; really FAIR? Many landlords and or brokers would say no. However I believe it is for the most part.

The fact is that no matter where you go, when you hire someone you would be responsible for payment. Meaning if an individual hires you to run their store they can't expect the customer walking in to pay your salary.

Maybe a contradictory statement but it should have never been allowed. That is not to discredit the fact that NYC market is usually always hot no matter it's low (except in severe circumstances like COVID) and people will pay for the right unit. This is also not to discredit the amount of hard work a good agent does to help a tenant find the right property or a listing agent to market and get the unit leased appropriately.

Has the act really help tenants? I believe in ways it has but it doesn't mean the tenant won't pay for the fee. I think it's simply broken down in rent overtime to an extent; producing higher rents. Which in ways to some tenants it does help, since it can be costly to come up with three months upfront.

Now it can't be confused, the act still allows you to collect a fee from the tenant if they hire you in the search. Again that's just normal reasoning and sounds fair.

What just seems a bit over the top is to list every fee associated with obtaining a unit. The fact is most buildings in the city unless rental buildings will come with a good amount in fees when moving in. These fees generally don't stop the tenant from moving forward with it as they expect it from these buildings especially when they really like it. Keep in mind agents can only report fees that management has made them aware of and any changes would need to come from management and at times they are not updated.

I think the industry is forever changing and this was a change waiting to happen. What this has done is create a huge list of for rent by owners in the market. This I'm sure aggravates owners to some extent and then later turns into becoming true listing for agents as they give up on trying to rent their unit.

Anyone can rent a property but doing it professionally and well , that comes with time & experience and some owners just don't have either or both.

Showings In the City!