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For any copyright, please send me a message. Two things are true at once: Rental brokerage fees are shockingly high in New York City and a major burden on people who want a new home; and being a New York rental-brokerage agent is an unglamorous and not especially high-paying job. These two facts can be true at the same time because the way we rent apartments in New York is very inefficient, and renting an apartment takes many more rental-broker labor hours than it reasonably should. Tenants pay a lot and don’t feel they’re getting a lot of value, and the brokers taking the fees from them aren’t exactly getting rich; it’s not a system that works well for anyone. As such, I welcome efforts by state regulators (currently tied up in the courts) to prohibit renter-paid broker fees. One likely effect of this change is that landlords will shoulder more of the cost of apartment brokerage, and renters can expect to see that cost built into higher rents. But landlords, who have more control over the rental process than tenants, will also have an increased incentive to make the rental process more efficient. If being on the hook for fees pushes landlords to find ways to cut the true economic cost of leasing a new apartment, that will lead to a real savings in the economy, not a mere cost shift. What do apartment-brokerage agents do all day? A lot of tenants grumble about brokerage work as “I paid a guy $4,000 to unlock a door”; that’s a bit unfair, as they do a lot of showings that don’t lead to a lease signing, and they (sometimes) provide useful guidance about what apartments to look at. In New York, where tenant protections are strong and it can take months to evict a nonpaying tenant, brokers also play an important role in guiding prospective tenants through the qualification process, as landlords will want an unusual wealth of evidence that the tenant is likely to pay rent as agreed. But apartment-rental brokers, like for-sale brokers, also spend a huge fraction of their time not doing business but looking for business. It’s apartment brokers who are posting zillions of nearly identical, sometimes-misleading Craigslist ads for non-exclusively listed apartments. This is annoying for you, as you comb through and try to figure out which apartments you want to see, but it’s also annoying for them, spending so much time competing with their peers in a search for clients who might eventually generate fees for them. In most other cities, if there is a broker involved in an apartment-rental transaction, the norm is that the landlord will pay his or her fee. This isn’t just tenant-friendly because it reduces the upfront cost to move into a new home. Because landlords essentially buy brokerage services in bulk, they have mo
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