Despite a new law banning broker fees for renters, New York City landlords and agents allegedly exploit legal loopholes to charge tenants thousands in disguised fees. Reports show renters being misled into signing forms and facing bogus charges labeled as “technology” or “service” fees, while the city’s watchdog has already logged hundreds of complaints.

Hidden Charges Emerge

Landlords are reportedly slapping prospective tenants with “management,” “service,” or “technology” fees, amounting to as much as $4,200, that resemble outlawed broker fees. These fees are surfacing just days after the FARE Act took effect on June 11, banning landlords from passing broker fees to tenants when the landlord hired the broker.

Renters Misled Into Signing

Several renters told The Post they were pressured into signing documents falsely claiming they had hired the broker themselves. “They’re exploiting a loophole in the law,” said Todd Roulich, a tenant broker, referring to the deceptive tactics landlords are using to shift financial responsibility back onto tenants.

Zillow Listings Called Out

Listings on sites like Zillow and StreetEasy have raised eyebrows. One Queens listing demanded a “Service/Broker Fee,” where the renter must agree to hire the broker directly. Another Brooklyn apartment oddly required $5,040 upfront, while the following 11 months’ rent was only $1,800.

Reddit Users Sound Alarm

Renters on Reddit, especially in forums like r/NYCapartments, have shared similar frustrations. “Some places we reach out to make us agree to a 1-month payment of fees if we sign a lease with them, and they won’t show without it,” wrote one user. Another added, “I’m trying to apply for an apartment, and the broker said to apply, I need to hire him as my broker, which of course includes a broker fee.”

DCWP Receives Complaints

According to the Department of Consumer and Worker Protection (DCWP), the agency enforcing the law, nearly 300 inquiries and complaints have been received since June 11. In a statement, the agency said, “With the FARE Act going into effect June 11, landlords will be prohibited from passing on the fees of real estate brokers they have retained to prospective tenants.”

Renters Feel Cornered

Kelly McGarry, a 27-year-old Queens native, said she was asked twice to sign documents falsely affirming she hired a broker. “They knew the FARE Act was coming, and they were prepared to do what they could to get around it.” She added, “I’ve applied for apartments in the past before, and I’ve never had to verify anything of that sort.”

Legal Gray Areas Abused

While the FARE Act clearly states that landlords must pay their own broker fees, renters are still being charged due to ambiguous enforcement. A $3,500 broker fee was spotted on a StreetEasy listing despite the platform’s disclaimer: “Under NYC law, you can’t be charged a broker fee if you didn’t hire a broker.” One user wrote, “I’m pretty sure through FARE we don’t have to pay this broker fee. The issue is we desperately need this place.”