Controversial Fee Eliminated For Newark Apartment Renters

NEWARK, NJ — Tenants will no longer have to pay a controversial fee when they rent an apartment in Newark, city officials announced Thursday.

The Newark City Council unanimously approved an ordinance that will prevent owners and their agents from charging their tenants for a “brokers fee,” an additional payment made to an agent in exchange for helping renters to find a property.

Now, landlords in Newark will have to pay these fees themselves if they choose to hire a broker – and they can’t pass the cost on to their tenants by raising the rent.

The ordinance will also require all tenant fees be listed and advertised in a “clear and conspicuous manner.”

Violations carry a fine of up to $1,250, and each improper fee charged to a tenant counts as a separate violation. The ordinance takes effect 20 days after its passage and publication.

“When people rent an apartment in Newark, they too often must pay a large brokers fee or commission in addition to the security deposit of one or two months’ rent and the high expense of moving,” Mayor Ras Baraka said.

“This widespread practice adds to the major expense and stress of finding a new place to live and takes advantage of the desperate need to find an affordable apartment during a severe housing shortage,” Baraka said.

“Our new ordinance lifts an unfair and unjust burden on tenants, and puts it where it belongs: on the backs of landlords, owners, developers and their agents,” the mayor added.

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