Learn More. Talk to Josh! After 50 Clinton Street was built and completed in 2016, I was immediately drawn to this development. Unlike many other new Condo projects in Manhattan, this resembled an old warehouse from the exterior with magnificent floor to ceiling windows set in an area with few new developments. In fact,
NYC Rental Broker Fee Law
The NYC Rental Broker fee law is causing havoc in the New York City Real Estate market. Real Estate Agents have become a dime a dozen. We are becoming the equivalent of the New York Taxi Cab driver. There are an estimated 25,000 Agents in New York City. Some good. Some bad. Some more honest and experienced than others.
Earlier this month, the State of New York placed a ban on brokerage rental fees in the middle of the night. Rental Agents and real estate companies woke up to chaotic news in the morning that threatened to change their business models.
After severe backlash and lawsuits filed against the Department of State, the temporary ban was lifted and is now subject to a greater discussion that will be debated in the weeks to come.
A Democratic Society
As a boutique Real Estate Company and Brokerage firm, I strongly support a capitalistic model and the ability to conduct business in a free enterprise system. This is the purpose of a democracy. Changing a law without a public debate or general awareness defies the Constitution and the freedom for businesses to operate openly in the United States of America.
The Pros: NYC Rental Broker Fee Law
With respect to the actual law change proposition, I do believe the real estate industry needs more transparency. New York City real estate functions like the wild west in a modern day era. This not only causes confusion for tenants or buyers, but creates problems for honest, hard-working Real Estate Agents. The last thing we want as real estate professionals is to have our industry tarnished with bad Agents for the Profession we love.
As referenced above and an article in Curbed.com, there are an estimated 25,000 Real Estate Agents in New York City. That is a staggering figure. Many do no produce results and leave the industry after realizing the grass is not always greener in real estate. Million Dollar Listing is not the everyday occurrence. It takes years of hard work and luck to generate success in this industry.
With more transparency in the industry and prerequisite qualifications, it would be of great benefit to deal with only qualified Agents. It would make my life a lot easier. The bar needs to be raised.
The Cons: NYC Rental Broker Fee Law
Back to the actual fee portion … The admission cost may be high to enter into a New York City lease, but someone has to bear the cost. Many Landlords do not have the skillset to market a property nor the time to show-up and meet clients looking to rent their unit. They rely on a professional Brokerage firm to market their property and find a tenant. The choice is to either raise rents to cover the cost of the brokerage fee or task their Assistant with showing the unit, something they are not skilled for necessarily.
Keep in mind, New York City Real estate taxes and expenses continue to rise. While tenant advocacy groups complain about the high cost of rents, the water, utility and tax expenses continue to increase. Landlords also deal with Rent Stabilized and Rent Control Apartments, which cap the cash flow on certain units. How is it fair that the property taxes can continue to jump, but landlords are locked-into $500 per month rents that have been in place since the 1960’s? I am certainly not taking up a collection for landlords, but if we are going to have an open, honest debate, we have to address all issues.
While the State of New York and Real Estate community continues to debate this matter, lets continue to be as transparent as possible and thrive in a capitalistic society!
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