SoHo Tenants Will Save More Than Most NYers Under Broker Fee Ban

SOHO, MANHATTAN — Renters in SoHo will save more than almost all other New Yorkers every time they move if an attempt to ban brokers from charging fees survives a legal challenge, according to a new study.

A surprise addition to the Housing Stability and Tenant Protection Act on Tuesday that would forbid brokers hired by landlords from billing tenants for their services caused rents to spike across the city this week, according to a PropertyClub report.

But those raised rents weren't enough to cancel out long-term savings most New Yorkers will reap from not being charged the 15 percent of their yearly lease in broker fees.

SoHo tenants, for one, will save $6,337 in the first year of the ban, more than all tenants in all neighborhoods except Battery City Park. Rents went up $3,264 per year in SoHo in the wake of the ban, but not paying the fee will mean $9,601 a year in savings, the report said.

"Even in the neighborhoods where rents on affected apartments are already over 10% more expensive, New Yorkers will end up actually saving money if they no longer have to pay a broker fee," the researchers said.

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

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 percent broker fee and the adjusted rent.

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.