New York passed a law that shifts intermediary taxes to rental property owners

Move in a city New York It is known to be an expensive and complex process, in which tenants face down payments that can exceed 10,000 dollarsincluding investmentsthe first month of rent and, in most cases, high broker commission.

Among this overview, the New York City Council allowed a elm that changes this practice: from now on, the ownersand not the tenants, they must take that expenses in most cases. With 42 votes in favor and eight against, the bill trying to relieve the economic burden of those who want residence in the city, far average income around the $3,400 per monthaccording to data from The New York Times.

This change has created intense growth discussion between those who support the project and those who warn of a possible increase in the increase rent. Chi Osséa counselor Brooklyn and the law’s promoter, insisting that this change seeks to end a “cruel and unfair system” that has harmed tenants for decades. Ossé emphasized the urgency of the democrats to face the high level cost of living in New York in response to voter demands.

The New York City Council approves the measure with 42 votes in favor and eight against. (Michael Nagle/Bloomberg)

The structure is commissions for the runners in New York It is an exception compared to most of the big cities there United Stateswhere owners usually include these costs in the rental properties. In New York, however, it is common for tenants to pay broker commissionswhich can be higher than a month’s rent and represents up to 15% of the annual cost of the residence.

These high costs stem from a structure implemented decades ago, when brokers were responsible for listing properties in various publications and serving potential tenants. there, acting as the “gatekeeper” of the building. rental offer. Today, most of the tenants They find their apartments online and many never interact in person with a broker, who has widely criticized this system.

The agreed law aims to shift the economic responsibility of the economy commissions from tenants to ownersa more common practice in other towns. According to the text of the law, the cost of the commission falls on whoever hires the services of the passagewhich in most cases owner. The rule also requires brokers and owners to disclose all related fees in the advertisements y rental agreementswith penalties up to 2,000 dollars in case of non-compliance.

The law responds to criticism of the commission system in place in the city. (Reuters/Shannon Stapleton)

Adrienne Adamspresident City Councilexpressed support for the measure and noted that the proposal received enough support to overcome the potential veto of the mayor. apart from Easy streetone of the main real estate sites in the city, the law has the support of influential political figures, such as the the governor of the city, Brad Lander.

Lander and other advocates see this law as a step forward justice in the rental marketas it reduces a significant financial burden for tenants than market price homes and also of rent-controlled apartmentsconfirmed New York ABC News.

The Real Estate Board of New York (REBNY)the powerful lobby army real estate businesshas been one of the main opponents of this law. From REBNY’s perspective, the trend is not only increasing costs for ownersbut ultimately these could be transferred back to the recipients in form higher rentespecially in a market with a vacancy rate close to it 1%the lowest in more than fifty years.

James Whelansaid REBNY president New York Times that this legislation is another example of how the ideology about the economic realitywhich could the housing research in New York. The mayor Eric Adamsex realtor and with a close connection to the industry, he also said worries about the effect of this law, especially to small owners.

The law will come into effect in 180 days, allowing for changes to be implemented. (Reuters/Luke Jackson)

Adams expressed fears at a news conference that the law would lead to “permanent” increases rentsince owners could compensate for the extra cost by increasing the basic income. For Adams, although the measure follows a fair purpose, its implementation must be evaluated to prevent tenants from paying even more.

he is bill establishing all that advertisements y lease agreements detailed information should be included about it commissions and the expenses that it is a receiver o owner It would have to be covered, depending on who has contracted the services passage.

Sanctions for not complying with this obligation include fine which can be accessed on the 2,000 dollars. In addition, the project confirms that these guidelines will be applied more generally New York rental marketboth inside rent-controlled apartments as in the at the market price.

The elm designed to initiate internal management 180 days from income, during that time the City Council and the municipal administration able to assess possible changes and prepare them estate agents y owners for the correct application.