Neil Visoky-Attorney

As of June 11, tenant-paid broker fees are now banned in New York City under the new FARE Act. The law stops landlords from passing broker fees onto renters, a move that’s expected to ease upfront costs significantly during the city’s busiest leasing season.

Until now, many renters had to shell out thousands in fees on top of already steep deposits and rent. The median apartment could cost over $14,000 to move into, with broker fees making up nearly half. That’s now changing, bringing NYC more in line with how most U.S. cities operate, where landlords cover the cost of brokers they hire.

Some in the real estate industry are bracing for tighter margins and shifting business models. Rents may inch higher as landlords incorporate more costs, but early signs suggest the change won’t significantly impact the market. With the summer rush underway, all eyes are on how the city adjusts to a new rental norm.

(via Yahoo Finance)