NEW YORK (CBSNewYork) — There’s a surprise for people looking to rent in New York City.
Broker fees paid by tenants are now effectively banned.READ MORE: 'I Want You To Be Inspired By Gabby': Over 1,000 Attend Public Memorial For Gabby Petito On Long Island
New guidance from the New York Department of State says landlords now have to pay broker fees, which can be up to 15% of an annual lease.
The change is a revision to a sweeping rent reform law passed last year.READ MORE: 2 Men Stabbed In West Village
Brokers can still collect a fee if a tenant hired them to look for an apartment.MORE NEWS: 74th Annual Tony Awards: List Of Winners
The broker industry warns landlords will pass on the cost to tenants by raising the rent.