N
ew York City landlords are finding ways to circumvent a law that prohibits them from charging broker fees to renters. The FARE Act, which went into effect on June 11, bans landlords from passing on the costs of real estate brokers to tenants.

    However, some renters have reported being hit with thousands of dollars in "management" or "technology" fees - essentially just another name for broker fees. Tenant brokers say that landlords and agents are exploiting a loophole in the law by charging these fees under different names.

    The city's Department of Consumer and Worker Protection has received nearly 300 complaints about FARE Act violations since its implementation. One Queens native reported being asked to sign forms stating she hired a broker, even though she hadn't. Another Reddit user claimed that an agent demanded they hire them as their broker in order to apply for an apartment.

    Some online listings have been caught charging broker fees under the guise of "service" or "broker" fees. For example, one Zillow listing asked for a security deposit and first month's rent, plus a $5,040 lump sum that seemed suspiciously like a broker fee.

    Tenant advocates say that landlords are trying to get around the law by being more aggressive in their tactics. The Department of Consumer and Worker Protection has warned that landlords will be prohibited from passing on broker fees to tenants under the FARE Act.

    To report FARE Act violations, consumers can visit nyc.gov/consumers or call 311. City council member Chi Osse, who introduced the legislation, urged New Yorkers to come forward with complaints about agents and landlords trying to charge broker fees.