Un-FARE

It's no secret that almost everybody hates real estate agents (until they need one). We're an easy scapegoat for the increase in housing costs, and thanks to a few industry influencers, we have created a public persona that has a serious "ick" factor.

I'm the first to agree that parts of our industry can certainly be improved. Still, good agents are grossly undervalued, and our role in the industry needs to be understood. We are the cog in the wheel that keeps everything moving. Without us, people would have difficulty getting into a home they want to live in for a price they can afford - especially in New York City.

For every deal you see us close, know that a hundred fell apart.

For every apartment bought, there were countless others in which the buyer said no to buying. 

For every home sold, many never found a buyer.

This job ain't easy! 

In all honesty, the brokerage industry needs better ambassadors to educate the public about what we do and our value, but that's a topic for another Padkos.  Instead of looking to cut commissions, these watchdog organizations trying to protect the consumer should demand a higher standard of conduct, not a lazy shortcut that hurts the people they are trying to help. 

This week, the New York City Council passed the Fairness in Apartment Rental Expenses Act (Fare), making it illegal for an agent to collect a fee from a tenant. Under this new law, landlords will have to cover broker fees in New York City instead of having the tenants pay. Whoever hires the broker will have to pay them.  

Sounds good in theory, right? But here's how this will play out in real life:

• Landlords need agents to rent their apartments. 
• Agents don't work for free.
• Landlords will have to pay agents. 
• So, landlords will raise their rent to cover the fee. (I know this because every landlord I have spoken with has told me this is exactly what they plan to do.)
• Therefore, the tenant will pay a higher rent to cover the cost of the brokerage commission.

To add insult to injury, the tenant will now only have representation if they hire an agent to advocate for them.  So, now their rent will be higher, AND they will have to hire an agent and pay them or have no representation at all.

Best case the tenant is paying exactly what they paid before and worst case they are paying double. Doesn't sound too "FARE" to me. 

Side Bar:  Here's a quote I'm pondering......"Great minds discuss ideas; average minds discuss events; small minds discuss people." - Eleanor Roosevelt

Let's Do This! 

Shaun