HereS a breakdown of the key points from the provided text:
Impact of the FARE Act (likely related to broker fees):
Increased Rents: BNY spokesperson Christopher Santarelli cited data from UrbanDigs suggesting a 15.7% rise in median rents for manhattan apartments in the 12 days after the FARE Act. Decreased Listings: UrbanDigs also reported a 55% decrease in new listings during the same period compared to the previous year.
Landlord Reactions and Strategies:
Rent Hikes: Opponents of the law argue that landlords are increasing monthly rents to compensate for having to pay broker commissions. This is reportedly happening in many cases.
Owners Listing Themselves: One Brooklyn broker, Sam Moritz, mentioned an owner who typically hired him to rent units but is now listing apartments himself to avoid paying the broker’s fee.
Nuanced View from Property Manager: Seth Coston of Time Equities inc. believes that while the law might lead to higher rents over time, it reduces the large upfront costs landlords previously charged.
“Trying to Strong-arm”: Landon Johnson, a software engineer, experienced a landlord raising his rent and then demanding an upfront fee from a broker for a lower monthly rate on a new apartment, which he felt was an attempt to circumvent the law.
Tenant Experiences:
Avoiding Fees: For many tenants, the elimination of large upfront broker fees is a significant factor in their decision to move or stay.
Finding “No Fee” Apartments: Johnson observed a noticeable increase in “no fee” apartments after an initial period where brokers seemed to be trying to work around the new law.
Savings: Johnson’s move to a new apartment without a broker fee resulted in a monthly saving of about $800.
Overall Sentiment:
There’s a clear debate about the impact of the FARE Act, with some seeing increased rents and decreased listings, while others highlight the benefit of reduced upfront costs for tenants.
* Some landlords and brokers appear to be adapting their strategies to the new regulations, with varying degrees of success and compliance.
