Big Apple tenants have been saving money on dropped broker fees even though landlords try to bake them into higher rents — but the financial gain won’t last, real-estate experts warn.
New York City renters saw a “significant” average savings of roughly $1,300 from the banned fees since the Fairness in Apartment Rentals Act went into effect June 11, according to a study published by tenant review platform OpenIgloo on Friday. 5
City rents overall this past summer rose a relative modest 6% above last year’s average for the same period, even as many landlords folded the lost fees into monthly rents, said OpenIgloo CEO Allia Mohamed.
Landlords used to force tenants to shell out fees of between 8% to 15% of their annual rent to pay brokers linking all the parties up, Mohamed said.