TRD on TV: Erin Hudson talks broker-fee shocker on CBS

TRD reporter Erin Hudson broke the news Wednesday that New York landlords, not tenants, would be obliged to pay broker fees for agents representing property owners. The news from the Cuomo administration came as a shock to tenants and the industry alike and has caused a huge amount of chatter in a city where almost 70% of residents rent their homes.

Hudson appeared on CBSN New York Friday morning to explain the possible aftereffects. “Undoubtedly the millions of New York City renters will be impacted the most,” Hudson said.

Given New York’s pricey rental market, many are hailing this a boon for common folk. But the industry has called it a death knell for rental brokers, and the Real Estate Board of New York is already planning a lawsuit.

“There’s going to be a seismic impact on the 25,000 licensed real estate brokers in the city,” Hudson said. “These changes are going to affect the average-Joe broker. A parent who maybe does real estate deals on the side renting apartments, an actor who maybe has this as a stream of income. … These are the ones who are going to feel they could be put out of business.”

Hudson discussed the possibility of landlords passing the cost on to tenants via increased rents as well as other potential implications.