Broker Fee Ban Would Save UES Renters Thousands, Study Says

UPPER EAST SIDE, NY — Renters on the Upper East Side could save thousands every time they move if New York's attempt to ban brokers from charging tenants fees survives a legal challenge, according to a new study.

Landlords raised rents after a New York court interpreted new rent laws to determine that landlords could no longer bill tenants for commission paid to brokers hired to market apartments, PropertyClub says in a new report.

PropertyClub pored through more than 7,000 listings and found more 70 percent of properties saw a spike in rent following the ban, according to the study.

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

Despite the increase in rental prices, tenants should stand to reap the reward without being billed as much as 15% of a yearly lease in broker fees, according to the report. Renters in the Yorkville section of the Upper East Side would save as much as $5,212 and tenants in the rest of the neighborhood would save $4,248, PropertyClub reported.

PropertyClub crunched the numbers by calculating the average rent for listings in a neighborhoods and the average rent increase following the broker fee ban. The study then took the difference between a 15% broker fee and the adjusted rent.

The numbers for Yorkville and the Upper East Side are impressive compared to savings for other neighborhoods in the city.

Here are the 10 neighborhoods that benefit most from a broker fee ban:

1. Battery Park City: $7,413 saved for a one-year lease.
2. SoHo: $6,337 saved.
3. Long Island City: $5,565 saved.
4. Tribeca: $5,280 saved.
5. Yorkville: $5,212 saved.
6. Chelsea: $4,898 saved.
7. Financial District: $4,758 saved.
8. Sutton Place: $4,717 saved.
9. Upper East Side: $4,248 saved.
10. Upper West Side: $4,239 saved.

Check out the PropertyClub study here.