Brooklyn NY rent regulations – How will they affect you
Just this past week I had attended a meeting of the Brooklyn Real Estate Board where Margaret Ling, Attorney, updated real estate agents and brokers on some of the latest changes in the real estate market. One of the biggest changes she was pointing out was in regard to the new rent regulations and how this plays out for Brooklyn NY rent regulations and for that matter NYC rent regulations. The inability of real estate brokers to charge renters a commission fee for renting an apartment, where they have a listing, was eye opening for many in attendance. There was an immediate buzz in the room. These regulations were put in affect back in June of 2019. In the past a renter might have been expected to pay a fee to a broker. The new rule indicates if a real estate broker has a listing for a rental the homeowner must pay the fee not the tenant. For sure Brooklyn NY rent regulations have changed. For small homeowners this will indeed come as a shock as many have no idea. Understanding the new rent regulations and how they will affect homeowners, real estate brokers and their agents is extremely important if they wish to be in the rental business. If a homeowner wants a real estate broker to help get their apartment rented they will need to pay the broker commission. The bottom line is rents in Brooklyn NY, as well as in neighboring cities have been on the rise, due to the shortage of apartments. Therefore, all these new regulations are being put in place to make it more affordable for tenants to rent. Check out this link for detailed info on: HUD affordable housing
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In many cases this will be an expense many homeowners aren’t aware they’ll need to pay. If a real estate broker collects the fee from the person/s renting, they’ll be in violations of DOS, Department of State, regulations. Real estate brokers could face fines and possible loss of licensing. Homeowners could also be found guilty and could face some type of penalty. The best thing for a homeowner to do is get in touch with a HUD, Housing and Urban Development office and ask about their homeowner classes.
Here is a link that will help homeowners and tenants better understand the rules. Brooklyn homeowners and NYC homeowners and Brooklyn real estate brokers, need to know the rules or they may pay a big price. BRESRE Realty Inc. has it’s principal office here in Brooklyn. Although many folks depend on our service as Brooklyn Real Estate Brokers, you should know we serve the 5 boroughs as well as Nassau and Suffolk counties. https://www.hud.gov/states/new_york/renting/tenantrights
As a member of the Brooklyn Multiple Listing, BNYMLS service we, BRESRE Realty Inc. look to them for guidance on these new rules. Here is some of what they have to say………….
Written circa, February 6, 2020. “In June of 2019, the Housing Stability and Tenant Protection Act eliminated tenant application fees charged by firms for processing the applications and limited the fees for credit/background checks to $20.00. The Newsday article on Fair Housing violations in Long Island has initiated a series of remedial measures to be enacted by New York State in the coming weeks which will require agents and firms to further educate the consumers on the their rights and remedies as pertains to housing discrimination. Yesterday, without prior notification, the real estate industry learned that all real estate firms acting on behalf of a landlord as a landlord’s agent can no longer collect a commission from the tenant. This has caused a tumultuous social media onslaught whereby tenants are contacting brokerage offices throughout NYS informing them of their rights and are demanding to be shown apartments without fee. Of course in jurisdictions throughout NYS where it is customary for the landlord to pay the brokerage commission for the rental of a unit, this new regulation will not have any major impact. It is specifically affecting those jurisdictions where the tenant pays the commission.
Here is what we know and it is not very much since we have not been provided guidance from the Department of State (DOS) as to this new regulation and the rules of engagement. Effective immediately, when a firm takes a rental listing from a landlord or if a firm holds a rental listing, whether it is open or exclusive, the firm is clearly working as the landlord’s agent. Any tenant who rents an apartment from the firm holding the rental listing is no longer required to pay a brokerage commission. It also appears that if the firm is acting on the behalf of the tenant only as a tenant’s agent and the agency relationship is made clear to the tenant and the firm clearly defines the financial responsibility of the tenant to pay a commission if the unit is rented, then that arrangement is not affected by the new regulation. The million dollar question is what happens if the firm is acting in a dual agency capacity and representing both the landlord and the tenant in the transaction…and unfortunately we will need guidance from the DOS in order to provide you with an intelligent answer. Until further clarification and we do not know when that is going to occur, it would safe to assume that if the firm has any agency relationship to the listing and the landlord, the tenant should not be paying a commission to the firm.
The Brooklyn MLS along with other New York real estate associations are actively involved in attempting to get further clarification from the DOS and upon notification of same, future newsletters will address this issue but until then, direct yourself accordingly.”
Hence when a homeowner is dealing with a real estate broker and their agents they should make sure those parties are associated with the MLS and hopefully they are also a REALTOR. A REALTOR is a real estate broker and it’s agents who belong to the National Association of REALTORS and rise to a higher ethical oath, as well as, training to protect themselves and the clients they represent. It’s not just how much can a homeowner get for their home, it’s a question of are things being done in a legal manner.
At BRESRE Realty Inc. , We Help With: Aging In Place, Selling Your Home, Transitioning to: Retirement Communities, Assisted Living Continuing Care Retirement Communities, CCRMs.
If you are a homeowner and would like to chat feel free to reach out either on our office number 718-513-6002 or directly on my cell: 347-291-7479. Have a great day, Annette Fisher, Real Estate Broker, BRESRE Realty Inc. , member of NAR, National Association of REALTORS, BNYMLS, Brooklyn New York Multiple Listing Service, NYStateMLS, New York State Multiple Listing Service, SRES designation, Seniors Real Estate Specialist and CSA, Certified Senior Advisor.