StreetEasy, Zillow join fight to reshape NYC broker fees

NEW YORK (PIX11) -- StreetEasy and Zillow are joining the fight to reform the broker fee in New York City. The cause is gaining traction among New Yorkers on Reddit, and they're also asking renters to join the fight. 

What StreetEasy and Zillow are supporting: 

A bill championed by State Assemblymember Chantel Jackson could revolutionize the rental process. It would empower renters to decide whether to include a broker fee in their rental process, giving them more control over their housing decisions. 

"For too long, renting in NYC has been a game of the 'haves' and 'have-nots.' What I’m asking for in this bill is simply transparency in the rental market," said Jackson. "The person who hires a rental agent should be the one to pay; they should have a written agreement, and agents should not be representing both parties. Renters deserve the right to choose if and how they’re represented, which shouldn’t affect their ability to get the apartment." 

In response to the bill, a spokesperson for the Real Estate Board of New York, a committee that has over 15,000 real estate professionals and over 810 brokerage firms, warned of the negative impact it could have on the industry.

"This legislation will penalize hardworking rental agents and make it harder to find and more expensive to rent an apartment," the spokesperson said.

The New York rental market and obstacles facing renters:

A government report released in February showed that renters in New York City are experiencing tremendous barriers as housing availability has hit its lowest level in over 50 years.

A huge burden facing many New Yorkers who want to move is the upfront cost, which usually includes a security deposit, advance rent payment, an application fee, and a commission, also known as a broker's fee, usually either a percentage of the yearly rent or one month's rent. 

"The New York rental market is challenging for renters and real estate professionals. Beyond sky-high rents, most New Yorkers need thousands of dollars in cash up front — on average more than $10,000," said Scott Friedman, director of NYC Rentals Marketplace for StreetEasy. "The legislation we are supporting creates much-needed transparency and control for consumers, ensures rental agents are fairly compensated by the party that hired them, and opens the door for more access and affordability in New York’s rental market."

Bill to change broker fees in NYC

• Renters should only pay a real estate agent if they’ve hired one – and broker fees should be transparent and negotiable.
• A single agent should only represent one side of a transaction (they should not represent both the renter and landlord).
• If an agent is representing a renter, there should be a written contract to reflect this relationship.
• Renters should be able to choose whether or not to use an agent during the rental process without affecting their ability to sign a lease. 

If you would like more information on the fight to reshape the New York City broker fee, click here.