In the upcoming week in New York City, a fresh rental law will be enforced.
The Game-Changing FARE Act Comes to Life
Get ready, New York City renters! The controversial FARE Act, a revolutionary legislation that aims to eliminate brokerage fees, officially kicks off on June 11th.
Behind this game-changer is none other than Council Member Chi Ossé, who has made it clear that landlords and property managers, not tenants, will foot the brokerage fees. Under the FARE Act, any additional costs for tenants must be disclosed upfront by property managers and brokers.
Since its approval by the City Council in November 2024, the FARE Act has been a hot button issue in New York's vibrant rental market. Tenants have long felt the burden of paying commission to brokers they didn't hire or want, and Council Member Chi Ossé was determined to put an end to that.
"We finally did it," Council Member Chi Ossé announced on Instagram last November. "Say goodbye to forced brokerage fees in New York."
FARE Act NYC - The Predicted Aftermath
As the June 11th deadline approaches, the Real Estate Board of New York continues to resist, hoping to stall the law. Despite the ongoing battle, StreetEasy's experts have given their two cents about the rental market's future, offering valuable insights for those eager to secure a new place to call home.
Leading the charge is StreetEasy's economist, Kenny Lee, who's examined potential ramifications once the law takes effect. Contrary to popular belief, Lee suggests that monthly rent prices are unlikely to skyrocket. In fact, he believes they'll remain relatively stable. Lee stated,
"Properties that waived brokerage commissions prior to the FARE Act's implementation did not see their rents increase beyond the broader market trend."
Furthermore, the FARE Act will significantly decrease initial lease costs. Lee also noted,
"Once the FARE Act becomes law, the average initial cost for rentals bearing a brokerage fee will drop by 41.8% to $7,537. Although landlords can impose other fees, the new law ensures tenants are well-informed, avoiding any unwanted surprises down the line."
Lee also hypothesizes that landlords will pick up most of the costs, with brokers and landlords adopting a similar strategy as they did pre-FARE Act. For more detailed insights, head over to StreetEasy's website.
If apartment hunting still feels like a daunting task (we get it), check out our experts' tips for winning the affordable housing lottery and harness the power of New York's first stabilized rent alert system.
NYC Offers a $100,000 Helping Hand to First-Time Homebuyers
Struggling to secure that first home in the Big Apple? The city might just have the answer! With a generous offer of $100,000 for first-time homebuyers, could this be the break you've been waiting for?
In light of the FARE Act, financial expert Kenny Lee predicts that monthly rent prices will remain stable and initial lease costs will significantly decrease due to the law's passage, with landlords and brokers possibly adopting a pre-FARE Act fee strategy. Meanwhile, the city offers a helping hand to first-time homebuyers with a $100,000 assistance program. For further insights and expertise, visit StreetEasy's website or learn how to navigate the affordable housing lottery and utilize New York's first stabilized rent alert system.
