Before yesterday, landlords could hire brokers for their properties and pass on the cost to future tenants. Though there was technically no cap on these fees, they averaged around 12% to 15% of the annual rent of the listing—meaning that with the first month’s rent + security deposit + broker fees, the amount due at signing in NYC averaged $13,000, according to StreetEasy:
It could still end up costing New Yorkers. Brokers and property owners unsurprisingly campaigned against the change, saying landlords would have to raise rents drastically to eat the cost. Analysts, however, say initial rent surges will likely taper off eventually. Trade groups sued in order to try to stop the measure from going into effect, but Tuesday, a judge denied their request to stall it while the suit proceeds.—MM
