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.

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.

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Brokers can still collect a fee if a tenant hired them to look for an apartment.

The broker industry warns landlords will pass on the cost to tenants by raising the rent.

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