A broker in New York City recently offered a one-bedroom, rent-stabilized apartment in Flushing at well below market rate, with the only catch being a $15,000 broker fee. The fee was too high for the tenant, 27-year-old Christian Garbutt, who couldn’t afford it. This example highlights the rising broker fees in the city’s competitive real estate market. While broker fees are common, they are becoming increasingly unaffordable for many New Yorkers, making it difficult for them to secure affordable housing. Current regulations do not explicitly cap broker fees, leading to confusion and controversy surrounding the issue. Efforts to limit these fees have failed in the past, but a new City Council bill could require the hiring party (landlord, property manager, or tenant) to cover the cost.
https://gothamist.com/news/a-rent-stabilized-1-bedroom-apartment-for-1100-in-nyc-the-brokers-fee-is-15k