Let me tell you something—New York just made a big mistake. Last week, the state passed the *Fairness in Apartment Rental Expenses (FARE) Act*, a law that sounds good on paper but, in reality, is going to hurt renters, crush small landlords, and make a handful of big companies very rich.
Now, I’ve seen a lot of policies come and go, but this one? This one’s a doozy.
Higher Rents? You Bet.
Here’s the thing—nothing in life is free. If landlords suddenly have to pay broker fees instead of tenants, you better believe those costs are getting passed right back to renters. Think about it: A one-time $3,000 broker fee spread over a year is an extra $250 a month. Stay three years? That’s $9,000—way more than if you’d just paid the fee upfront.
But most renters won’t do the math. They’ll just see no upfront fee and think they got a win. Meanwhile, their rent just went up—*permanently.*
Landlords Are Already on the Ropes
Let’s not forget who we’re dealing with here. Most landlords in this city aren’t fat cats—they’re regular people, maybe a family that owns a two-family home or a small-time investor trying to make ends meet. And right now? They’re getting crushed.
Interest rates are sky-high. The 2019 rent laws tied their hands on raising rents. Maintenance costs? Through the roof. And now this? Forcing them to pay broker fees could be the final straw. More foreclosures. Fewer rentals. Higher prices for everyone.
And what happens when landlords can’t afford to pay brokers? They’ll either list apartments themselves—good luck with that—or turn to…
StreetEasy’s Big Payday
Here’s where it gets interesting. StreetEasy, the big rental platform, *loved* this bill. Why? Because they stand to make a *fortune.*
See, when landlords have to pay broker fees, many will skip brokers altogether and list directly on StreetEasy. And guess what? StreetEasy charges *$7 a day* just to advertise a rental. More listings? More turnover? More desperate landlords? That’s a goldmine.
And let’s not forget—independent agents used to market rentals for free on their own sites. Now? They’re getting squeezed out. StreetEasy wins. Everyone else loses.
Some analysts say this law could funnel an extra *$100 million a year* into StreetEasy’s pockets. Not bad for a company that just helped write its own paycheck.
The Bottom Line
Look, I get it—nobody likes paying broker fees. But this law? It’s a classic case of “be careful what you wish for.”
Rents will go up. Small landlords will get wiped out. StreetEasy will get richer. And in the end, New Yorkers will be left with *less* affordable housing, not more.
If Albany really wanted to help renters, they’d focus on building more homes—not passing laws that make everything more expensive.
But hey, what do I know? I’m just a guy who’s seen this movie before. And trust me—it doesn’t end well.
