This issue goes beyond the surface.
Landlords in New York City are employing deceptive methods to bypass new regulations that ban renters from being charged broker fees, as reported. Numerous prospective tenants are encountering unexpected “management” or “technology” fees that seem oddly reminiscent of traditional broker fees that they used to pay.
“They really know how to take advantage of the law’s loopholes,” commented Todd Lulich, a landlord and tenant broker in New York.
Some individuals have experienced being asked to sign documents asserting that they were hiring brokers, even when that wasn’t the case.
The recently implemented fare law, aimed at promoting fairness in rental costs, disallows the collection of broker fees—typically around 15% of a unit’s annual rent.
The Consumer and Workers Protection Agency has reported receiving almost 300 inquiries and complaints about potential breaches of this law since it was enacted on June 11.
A Zillow listing specified that a security deposit, monthly rent, and “service/broker fees” were required, raising eyebrows.
One user on Reddit expressed frustration: “I’m applying for an apartment. The broker wants me to apply through him. Naturally, that means broker fees.” This sentiment echoes the experiences of many New Yorkers.
Kelly McGarry, a resident of Queens, shared her encounters with brokers at apartment showings. She noticed each agent attempting to have her sign paperwork that falsely claimed she had engaged them.
“In the past, I never had to deal with anything like this,” McGarry recounted. “They clearly anticipated the fare law and prepared to work around it.”
Another listing from Bayside, Queens included a statement that tenants would need to hire a broker for a “service/broker fee” in a way that feels misleading.
According to a statement from the DCWP, once the fare law took effect, landlords should no longer transfer any broker fees they hold to future tenants.
In a listing for a Brooklyn apartment, prospective renters noticed high upfront costs, including a lump sum that exceeded $5,000—costly for many.
Reports of similar questionable practices continue to emerge. One frustrated tenant shared that some listings required them to agree to pay a broker fee to sign a lease.
Another user voiced their concern: “I don’t think I’m obliged to pay this broker fee, but the market is tough.”
The Consumer and Workers Protection Department reiterated that landlords cannot assign broker fees to upcoming tenants after the law’s effective date, even for leases signed beforehand.
As the landscape shifts, it appears some landlords might be raising rents to buffer the costs of hiring brokers themselves, potentially leaving tenants in a tight spot.
Allia Mohamed, from the real estate site Openigloo, suggested that these deceptive tactics from agents and landlords are part of a transitional phase, and she hopes that the situation will stabilize once those acting unscrupulously are held accountable.
City Council member Chi Osse, who spearheaded the law’s introduction last year, encouraged New Yorkers to report any agents or landlords attempting to impose broker fees.
“If you see a listing claiming a broker is working for a future tenant, it’s likely a lie,” Osse asserted. “Those listings are made with the landlord’s consent, meaning the broker is ultimately representing them.”
Consumers can file complaints regarding fare law violations through official channels or by contacting 311.
