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For a brief moment in 2020, prospective renters in NYC had some relief when New York made it illegal for landlords to require a broker s fee, but now that new law is gone and brokers can continue to collect a fee.
It s hard enough finding the right apartment and one that you can afford. Broker s fees have notoriously been a stumbling block for many New Yorkers since it s usually one month rent or up to 15% of the annual rent paid in one lump sum and this is on top of an application fee and a credit check.
But on January 31, 2020, state regulators issued new guidance on the Housing Stability and Tenant Protection Act, which became law in June 2019. The new guidance suggested that it was illegal for prospective renters to pay a broker if that broker is acting on behalf of a landlord. It went into effect immediately, causing real estate brokers to panic.