John  Cordeira, John Cordeira (Cordeira Homes)

Spam prevention
Rainmaker
718,565
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

John, New York brokers have (or had) a virtual monopoly on rentals:

1. Landlord hires broker as leasing agent. 

2. Broker advertises rentals online. 

3. Tenant responds culminating in a lease.  

4.  Tenant pays 15% of annual rent to broker.

The new law, however, shifts the fee burden to the landlord, unless the tenant actually hires the broker.

The landlord, of course, may decide to bake the broker fee into rent.  

Feb 06, 2020 10:09 AM
Ambassador
5,405,687
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Unintended consequences are sure to follow.

So many of these laws that are designed to protect actually do the opposite, govt should really stay out of landlord tenant situations, most homelessness in our country is caused by landlords that are afraid to allow all but the best applicants because they know that the over protective laws will make evictions very expensive.

Feb 06, 2020 09:54 AM
Rainmaker
6,603,283
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No thoughts on this since I am not in New York.

Feb 06, 2020 09:52 AM
Rainer
317,275
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

In California we are seeing new crazy residential investment real estate laws.  New York also is attempting to rebalance the pot. 15% of the lease could be a big amount of money if the unit is luxury, in California the standard is one month's rent - about 12%  which landlord pays-- The problem is it's difficult to find great housing, agents aided landlords in vetting and showing a unit to get it occupied right away. Landlords will raise rents (when they can) to pay the fee or find some work around. What do you think landlords will do to avoid the cost?

Feb 06, 2020 03:00 PM
Rainmaker
1,386,718
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

In california the landlord has always paid the fees to the Broker.  Most property managers charge a large (but flat) fee for procuring a new tenant.  As others have said, any fees now on the landlord will likely be passed onto the tenant via rent increase, application fees or other methods.

Never doubt the ingenuity of the landlords.  We're going through some of that now in California after our most recent statewide rent control laws went into effect.  Landlords were terminating leases on 12/31 left, right and center or raising the rates several hundred percent.  I'm sure leases here will now be 11 month leases to avoid the protections that go into effect after 12 months.

Feb 06, 2020 01:46 PM
Rainmaker
1,898,009
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Even though it does not affect me at this time I appreciate the link John because you never know how laws/regulations will spred.

Feb 06, 2020 10:33 AM
Ambassador
4,255,186
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Thankfully I'm both in NC and don't do property management!

Feb 06, 2020 08:48 PM
Rainmaker
5,582,491
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

John,

No thoughts on this, and  I hope it will work out for everyone involved. A

Feb 06, 2020 10:25 AM
Ambassador
3,054,614
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

We have many new Landlord-Tenant laws in California as well. 

Thoughts are - it is what it is.  Laws are laws.  

Feb 07, 2020 09:40 AM