Forest Hills Rents Jump After Broker Fee Ban, Data Shows

FOREST HILLS, QUEENS — Rents in Forest Hills spiked by 4.5 percent after state regulators unexpectedly banned landlords from saddling tenants with brokers fees, but renters could still save money in the long run if the ban survives a legal challenge, a new study found.

In the days since state regulators effectively banned landlords from making their tenants pay brokers' fees, the yearly cost of renting an apartment in Forest Hills has gone up by about $1,123, according to a PropertyClub data analysis.

New York Department of State officials announced the change last week in a surprise addendum to the Housing Stability and Tenant Protection Act of 2019, a new law that boosted tenants' rights.

"As it turns out, the industry moves fast," the PropertyClub analysts wrote. "A lot of listings were quickly updated and displayed higher rents than before."

Rents rose by just over six percent both in Queens and citywide, according to PropertyClub's analysis of 7,000 rental listings from major real estate agencies.

But if the broker fee ban survives a legal challenge from real estate industry bigwigs, who succeeded in getting a judge to temporarily block it from going into effect, Forest Hills renters could end up saving money, PropertyClub found.

Broker fees typically cost about 15 percent of an apartment's yearly rent, which means the shift would still save tenants a combined $256 million a year, the analysts said.

In Forest Hills, renters would save about $2,621 in the first year, according to the PropertyClub analysis.

"If the landlord is responsible for covering the brokers fee, tenants are in a much better position when negotiating a long term lease or a renewal," PropertyClub CEO Andrew Weinberger said.
"Having landlords pay broker fees changes the game completely."

Read the full analysis here.

Patch editor Kathleen Culliton contributed reporting.