Proposed legislation introduced to the New York City Council today would regulate residential leasing commissions.
If this sounds familiar, a bill introduced to the New York City Council in February of 2019 would have limited the amount a residential broker hired by an owner could collect from a tenant to one (1) month’s rent, though there would be no limitation on a broker’s fee when paid by an owner. That legislation was not passed.
In January of 2020, New York State issued guidance that a broker hired by a landlord couldn’t collect a commission from a tenant at all. That guidance was overturned in April of 2021 and brokers are currently able to collect commissions from tenants.
The proposed legislation would require that a broker collect their commission from the party employing the broker. Int.1105-2023 was introduced today and though the bill does not affect the amount of a broker’s commission, it would mean that a broker hired by a landlord could not collect a commission from a tenant. It is important to note that the bill was introduced today and is not a law. We will continue to monitor the progress off this bill as it moves through the New York City Council.
Keeping up with the changes in rental laws can be difficult. Our firm developed a proprietary platform called RezCue to help owners, brokers, and property managers follow the 2019 Housing Stability and Tenant Protection Act.
If you are a broker who has helped an owner rent out one single apartment then you need RezCue!
We’ve heard horror stories of brokers not being able to sell a property because the owner did not issue a non-renewal notice, and owners losing out on rent or the security deposit because they didn’t know the law.
You don’t need to look any further than what happened to a $5M house in the Hamptons when the property didn’t close for 15 months while it was tied up in litigation.
Join other successful brokers and keep track of the deadlines required by law including:
- Non-renewal notices so a tenant will vacate on time and you can re-rent or sell the property more easily
- Rent increase notices so your client can increase the rent by the amount they want
- Walkthrough timeline so your client can monitor damage to the property
- Security Deposit deadline so your client can use the security deposit to pay for damages.
To find out more and obtain a complimentary trial of RezCue, feel free to contact us at (212) 625-8505.