The New York City Council secured a major win for renters by passing legislation to end upfront broker fees, a common burden for those seeking housing across the five boroughs.

Changing the broker-fee landscape in NYC housing

New York City and Boston stand out as the only U.S. cities that require tenants to pay broker fees, even if they have never hired or met the broker. The hefty fee, typically around 15% of the annual rent, is added to the total cost when tenants sign their new lease. This fee goes directly to the broker who listed or showed the property, The City and Gothamist reported.

Councilmember Chi Ossé (D-Brooklyn) speaks during a rally at the steps of City Hall ahead of a City Council meeting on November 13, 2024 in New York City. | Photo by Michael M. Santiago/Getty Images

The bill, which was introduced and sponsored by Chi Ossé, a council member who represents Bedford-Stuyvesant and North Crown Heights in Brooklyn, will now require the party who hired the broker, usually the landlord or building manager, to cover the broker fees. If tenants choose to employ their own real estate agent to ease the housing search, they are still responsible for paying that fee.

Council member Chi Ossé celebrates the passing of his bill during a City Council meeting at City Hall on November 13, 2024 in New York City. The NYC City Council held a series of votes that included the Fairness in Apartment Rentals Act, which requires whomever hired the real estate broker to pay the fee, essentially freeing renters from paying broker fees. The bill which was sponsored by Council member Ossé, passed by a 42-8 vote | Photo by Michael M. Santiago/Getty Images

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