💡 UPDATE: The FARE Act Passed on November 13, 2024. Read more here.
On Wednesday, June 12, 2024, openigloo was invited to testify at City Council about the FARE Act (Fairness in Apartment Rental Expenses Act). The proposed bill stipulates that whoever hires the real estate broker should pay for the broker fee. In New York City, the majority of rental listings come with a fee. This common practice in NYC makes moving very expensive for renters. Groups who support and don’t support the bill attended the Council’s committee on consumer and worker protection to hear various stakeholders testify and share their perspectives.
See our full testimony below:
Introduction
“Hello, my name is Allia Mohamed. I am the co-founder and CEO of openigloo. A leasing marketplace that has helped over 1.5m New York City renters research their landlords, review their buildings and find quality apartments.
In the last 4 years, we’ve worked alongside brokers and landlords, who share our belief that transparency is paramount in creating a fair and functioning housing market. At openigloo we feel that the FARE Act supports that belief and today I want to share some of the perspectives we’ve learned from the renters, agents and landlords that are a part of our community.
What the FARE Act Means for Renters
I think many people in this room would agree that whenever a New Yorker complains about their housing situation; maybe it’s a maintenance issue, or maybe they just want a different kind of space; People outside of New York will commonly respond with the same answer: “Well, if you don’t like it, why don’t you just find something else?”
“And this response is frustrating because many of us know the financial and emotional toll that comes with moving here. A 1-to-2 month broker fee on top of other moving costs is a financial impossibility for many New Yorkers. The FARE Act will give renters the freedom to move and the freedom of choice. Further, it will keep renters from being excluded from what is already a tight housing market.
What the FARE Act Means for Landlords & Agents
We’ve also learned this from landlords. It’s BETTER if tenants aren’t forced to pay a fee to a broker who didn’t represent their interests. Many owners agree that the FARE Act has the potential to build trust and make sure the owner-tenant relationship starts off on the right foot. And that’s good for business.”
“From agents in our community on our team; we’ve heard that this will present an opportunity. An opportunity for great agents to rise above the stigma. Allowing them to focus their energy on building long lasting relationships with owners and renters who value their expertise.
Conclusion
I understand that this is a charged debate, but one thing is unequivocal and that’s that something needs to change. The FARE Act is the first proposal we’ve seen that isn’t going after brokers or the fees. But rather trying to make the process of renting transparent and fair for all stakeholders. Thank you.”
If you have any questions or ideas, never hesitate to reach out to our team at info@openigloo.com!