Broker fee to be transferred to Landlord in NYC

[Sh Capova]

How will a Landlords manage paying for the broker fee with rental properties going from June 25?

[Mohammed Rahman]

Starting June 25, if the new ruling holds, landlords in NYC will be the ones responsible for paying the broker’s fee when they hire the broker—not the tenants.

So if you’re a landlord and you list a unit with an agent to find a tenant, you’re the one on the hook for the commission.

That means landlords need to start budgeting for this as part of turnover costs, the same way you’d plan for painting, cleaning, or minor repairs between tenants. It might also make some landlords try to fill units on their own, raise the rent slightly to offset the cost, or push for longer leases to reduce how often they pay it.

If you're working with a property manager or agent, now’s the time to renegotiate what their fee includes—or see if they’ll offer flat-rate leasing services instead of a full month’s rent as commission.