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Tag: tenant rights

  • Maricopa County faces eviction crisis as pandemic aid dries up

    Maricopa County faces eviction crisis as pandemic aid dries up

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    Eviction filings in Maricopa County courts increased sharply last year as pandemic-era rent relief withered away, with some months showing record numbers for the last two decades.

    Landlords moved to evict tenants in court 83,236 times in 2023, court data shows, a rise of about 23% from the 67,491 filings in 2022. The months of September and October 2023, when property owners filed, respectively, 7,809 and 7,948 evictions in county courts, are the highest figures for those months in the last 23 years. (The county’s electronic eviction records go back to 2000.)

    While only 13% of eviction filings in 2023 yielded actual eviction orders for tenants, housing and tenant advocates worry the number of evictions will continue to rise and result in catastrophic levels of tenant displacement.

    “We’re not doing anything differently,” said Maxine Becker, an attorney with Wildfire Arizona, an anti-poverty advocacy organization. “And whatever bits of help were out there are going to be completely gone. I don’t see any reason why (the numbers) would suddenly go down.”

    Several converging economic factors have fueled the eviction crisis, including meteoric rises in rent in metro Phoenix, a lack of affordable housing options and wages that haven’t kept up with the cost of living, according to Nicole Newhouse, executive director of the Arizona Housing Coalition. The coalition is a nonprofit seeking to provide safe housing and end homelessness in Arizona.

    A Maricopa Association of Governments analysis of U.S. Census Data shows that apartment rent has gone up about 38% in the last four years in metro Phoenix. The median rent for a one-bedroom apartment in the area was $1,550 in 2023, the study says.

    The increase in rent, Newhouse said, can be blamed in part on landlords who opportunistically raised rents once the statewide evictions pause was lifted in late 2020 by then-Gov. Doug Ducey.

    “People were in various states of their leases, and when those leases were up, because landlords weren’t able to get paid from some of their tenants, tenants were evicted, and then landlords were able to raise the rents,” Newhouse said.

    The area also faces a general housing shortage. In 2022, the Arizona Housing Department estimated the state needs 270,000 more housing units to serve its population. “We haven’t built enough housing for people who have the least,” Becker said. “That is what really is driving the problem.”

    MAG estimated last June that these high-rent conditions landed the hardest on area residents with the least economic means.

    About 548,000 households, or a third of the city’s tenant population, are cost-burdened, meaning that they spend about 30% of their income on rent. Further, 256,000 households spend half of their earnings on rent, or are severely cost-burdened. Almost all of the cost-burdened households, about 92%, earn less than $75,000 a year, MAG estimates.

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    Arizona Attorney General Kris Mayes highlighted the apartment landlords she accused of price fixing during a press conference on Feb. 28.

    TJ L’Heureux

    Few options to slow evictions

    How are public entities trying to curb evictions?

    Maricopa County created a new Housing Stability Rental Assistance program in February to aid renters experiencing “greatest need,” a county spokesperson said.

    The program draws from a $10 million pool of funds allocated to the county through the American Rescue Plan Act, a federal aid package awarded to local governments for pandemic recovery and infrastructure investments.

    It will help pay up to two months of back or future rent for households that meet the federal eligibility threshold of less than $84,000 in yearly income, said Czelsi Gomez, a public information officer for the county. Tenants can apply for the program online.

    Before the HSRA, the county relied on the Emergency Rental Assistance program to prevent tenant displacement. The ERA, which ended Jan. 19 after providing $141.6 million in rent and utility assistance in Maricopa County, was also funded with federal dollars, disbursed to states during the pandemic to address tenant displacement in the economic downturn.

    Funds for the program have been fully spent, and the county doesn’t plan to extend the program further, Gomez said.

    “ERA was always intended to provide temporary relief to those impacted by the national and local health emergency,” Gomez said.

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    Greenlight Communities broke ground on Streamliner 16th on East Polk Street in April 2023. The 208-unit complex is supposed to offer “attainable” — if not affordable — housing.

    Katya Schwenk

    Property rights trump tenant rights in Arizona

    The county hopes to reduce the number of evictions by providing legal assistance to tenants. The county has contracted with Community Legal Services, a local nonprofit legal service provider, to help tenants facing eviction.

    The program started in 2021 when the County Board of Supervisors used $2.6 million in American Rescue Plan Act funds to launch the program. The program’s allocation in 2023 was $323,561, and Gomez said it served 2,269 individuals last year, including referrals, calls and negotiations with landlords.

    Legal advocates, however, question the effectiveness of legal representation in the face of eviction, saying state law is too deferential to property owners. Becker said, for example, that tenants don’t have much recourse under Arizona law to fight an eviction if their home is in disrepair.

    “It doesn’t matter if a landlord doesn’t fix your air conditioning or your plumbing when you’ve got leaks,” Becker said. “That is not a legal defense in Arizona.”

    Becker attributes the lack of legal strategies to the state’s strong sense of property ownership rights.

    “It really drives the state in a lot of ways,” she said. “They need to be allowed to do whatever they want with that property, and I respect that value,” Becker said. “But I think that it’s also just kind of clouded our ability to look at how the economic conditions have changed.”

    For Becker, these values translate into a culture of shame around evictions. There is a belief, she said, “that if you can’t pay your rent, you’ve done something wrong. You didn’t work hard enough, you didn’t budget properly, you made bad decisions.”

    But the private and philanthropic sectors are starting to develop solutions, she said. It starts with a change of perception.

    “There’s more thought now going into prevention entirely,” she said. “We are looking at some of these eviction issues that have started out as a $400 problem, a couple hundred dollars short on rent. We are looking at how we identify those folks and see if we can help them with the smaller dollar amount before it escalates into an eviction.”

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    Eddie Velazquez

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  • Broker Fees In NYC 2024: Don’t Get Blindsided – Southwest Journal

    Broker Fees In NYC 2024: Don’t Get Blindsided – Southwest Journal

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    As a tenant in NYC, it’s important to stay informed about your rights and the current regulations concerning broker fees. These laws impact your financial obligations when entering a rental agreement and protect you from being overcharged.

    Being well-informed also places you in a better position to negotiate with landlords and real estate agents, ensuring that any broker fees you’re responsible for are fair and in accordance with the law.

    Recently, there has been attention on tenant rights and changes to the traditional structure of broker fees, with efforts to shift financial responsibilities and provide more transparency in real estate transactions.

    Key Takeaways

    • Broker fees in NYC historically range from 12 to 15% of the annual rent.
    • Recent regulations limit broker fees to 0.3–15% of the first year’s rent.
    • Tenants have rights under new regulations, including caps on security deposits and application fees.
    • Landlords and real estate agents must adapt to these changes, potentially absorbing broker fees and adjusting rental pricing strategies.
    • To determine broker fee responsibility, tenants should inquire upfront.
    • If overcharged, tenants can review leases, gather documentation, consult the law, and contact brokers directly.

    Overview

    When you’re on the hunt for an apartment in New York City, understanding broker fees is crucial. A broker fee is a charge paid to real estate agents for their services, typically for connecting landlords with potential tenants.

    • Broker Fees: These fees could range from 12 to 15% of the annual rent, which you, as the tenant, would pay upon signing your lease according to Lemonade Insurance.
    • Recent Changes: There has been significant controversy and changes to these regulations in recent times, aiming to reduce the financial burden on renters.

    What You Should Know

    • Regulations: State regulations previously limited broker fees to a range of 0.3–15% of the first year’s rent. Whether the broker was hired by you or the landlord did not affect this as highlighted by Cityrealty.
    • New Guidelines: To understand the latest law and its implications, keeping up-to-date with the most recent guidelines issued by the New York Department of State is essential.
    • Payment Responsibilities: Under these guidelines, it was clarified who should bear the cost of the broker fee—whether it’s you or the landlord. This clarification greatly affects your budgeting for an apartment.

    For an apartment with a monthly rent of $3,000 and a broker fee of 15%, you could be paying a broker fee of $5,400. [$3,000 x 12 months x 15% = $5,400.]

    Tenant Rights Under the New Regulation

    Real estate agent fees

    In New York City, recent changes to broker fee regulations have important implications for your tenant rights. Understanding these changes is crucial to ensuring you are not overcharged during your apartment hunt.

    Landlords are now limited to requesting a maximum of one month’s rent for a security deposit. This change helps reduce the upfront costs for tenants moving into a new apartment.

    Broker Fee Transparency

     If you’re required to pay a broker fee, agents must clearly disclose all fees upfront before you sign a lease. These fees should be reasonable and reflect the actual cost of services provided.

    • Tenants were responsible for broker fees of 12 to 15 percent of the annual rent. Under the new rules, the party who hires the broker typically pays the fee. In many cases, this shifts the burden away from tenants to landlords.

    Application fees are now capped at $20. This includes background and credit check fees, helping to keep application costs low.

    Your right to a safe and habitable living environment remains firmly in place. Landlords must address maintenance issues promptly and maintain the quality of the property.

    Implications for Landlords and Agents

    NYC housing expensesNYC housing expenses

    When you’re a landlord or a real estate agent in NYC, understanding the city’s broker fee laws is crucial. These regulations have a direct impact on your business operations and your interaction with potential tenants.

    Landlords are now more likely to absorb the cost of broker fees, especially since recent interpretations of the 2019 rent law ban tenants from bearing this expense in certain situations. This could affect your profit margins and might necessitate an adjustment in your budgeting and rental pricing strategies.

    As an agent, it’s also essential to note any shifts in the industry’s standard practices. Polices such as the potentially changing landscapes on broker commissions which are limited to between 0.3-15% of the total rent require you to stay informed and adapt.

    This might mean increasing your efficiency, providing additional services, or improving client relationships to maintain your income.

    • Keep abreast of any legal changes
    • Align business models with regulatory compliance
    • Adapt service offerings and fee structures as needed

    Remember, these broker fees are not just about your revenue—they play a significant role in the dynamics of the real estate market and can influence a client’s decision to rent or not.

    How to Determine Broker Fee Responsibility

    Agent service chargesAgent service charges

    When you’re searching for a rental in New York City, understanding who is responsible for the broker fee is crucial. 

    • Tenant Responsibility: Typically, if you enlisted the services of a broker to find an apartment, you are expected to pay the broker fee, which is usually between 10 to 15 percent of the annual rent according to NY Rent Own Sell.
    • Landlord Responsibility: In some cases, especially in a market with many available listings, landlords may agree to pay the broker fee to attract more applicants.

    To determine the responsibility for the broker fee:

    1. Ask upfront when inquiring about an apartment; clarify who pays the broker fee.
    2. Examine the lease agreement, as it should stipulate who is responsible for the broker fee.
    3. Look for “no-fee” listings, indicating that the landlord covers the broker fee.

    Steps to Take if Overcharged

    NYC rental costsNYC rental costs

    If you suspect you’ve been overcharged a broker’s fee in NYC, there are several steps you can take to address the issue:

    1. Initially, look over your lease and any agreements regarding the broker’s fee. Ensure you understand the terms you’ve agreed to.
    2. Collect all related documentation, such as receipts and emails, to support your claim that the fee charged was higher than agreed upon or legally permissible.
    3. Educate yourself on the current regulations surrounding broker fees to confirm if you have indeed been overcharged.
    4. Reach out to the broker to discuss the discrepancy. It’s possible it could be resolved amicably and quickly.
    5.  If the broker is uncooperative, you may file a complaint with the New York State Division of Licensing Services. They oversee the conduct of brokers and can take disciplinary action if necessary.
    6. For legal guidance and to explore further action, consult with a tenant attorney who specializes in NYC housing laws.
    7. Consider joining a tenants’ union for support from other renters and additional resources.

    It’s important to act promptly and keep a record of all communications and attempts to resolve the issue.

    Grandfathered Agreements

    NYC rental market feesNYC rental market fees

    A grandfathered agreement refers to a lease or rental situation that continues to operate under the old rules or laws that were in place when the agreement was initially signed.

    In the context of broker fees, if your rental agreement was signed before new regulations came into effect, it’s possible that certain terms such as the obligation to pay a broker fee may still apply to you. Here’s what you should know:

    • If your lease was signed while it was still standard for tenants to pay broker fees, you may be legally obliged to continue paying these fees until your current lease expires.
    • Upon renewal of your lease, the terms may be subject to the most current laws, which could alter your financial obligations.
    • You have the ability to negotiate the terms of your lease upon renewal, including the continuation or removal of broker fees if they were part of the original agreement.

    Broker Agreements

    Avoiding hidden costs NYCAvoiding hidden costs NYC

    • Your broker is there to facilitate connections between landlords and tenants, assist with paperwork, and offer guidance on apartment listings.
    • Clarify all fee-related details upfront. Fees are negotiable and typically depend on the apartment’s rent. Confirm whether the fee is a flat rate or a percentage of the annual rent.
    • Keep abreast of the latest legal developments impacting broker fees, such as the recently changed rules around NYC’s broker fees, to ensure compliance and understanding of who is responsible for the fee.
    • Understand when the broker fee is due, which is usually upon lease signing. Be prepared to pay the fee along with first month’s rent and security deposit.
    Do’s Don’ts
    Ask for clarity on all fee-related terms Assume the fee percentage or terms are non-negotiable
    Research the broker’s reputation and track record Forget to check for recent changes in broker fee laws
    Budget for the broker fee in addition to other costs Delay conversations about broker fees until lease signing

    Remember, broker fees are a significant part of the renting process in New York City, and understanding these agreements is crucial in managing your expectations and finances.

    Legal Recourse for Violations

    • Keep records of all payments and communication with the broker.
    • File a complaint with the New York State Division of Licensing Services.
    •  Consult with an attorney to discuss your case. Some law firms focus on tenant rights in NYC.
    • For claims below a specific monetary threshold, consider taking the broker to small claims court.
    Step Action
    1. Documentation Compile records of payments and communications.
    2. Filing Complaint Submit a complaint to the Division of Licensing Services.
    3. Consult Seek legal advice from a lawyer specializing in tenant rights.
    4. Court Action File a case in small claims court if applicable.

    Note: Always double-check any actions with a legal professional, as the laws and your rights may have been updated since this guide’s publication.

    FAQs

    Who is responsible for paying the broker fee when renting an apartment in NYC?

    Traditionally, you, the tenant, are responsible for paying the broker’s fee when renting an apartment in NYC. This fee is paid to the real estate agent for their services in finding you a rental property.

    Has there been a change to the legality of broker fees for tenants in New York City?

    Yes, there have been changes and legal debates surrounding broker fees in New York City. For the latest legal status and how it might affect you, it’s a good idea to review up-to-date information from trusted local sources.

    What are the regulations surrounding the limit or cap on broker fees in NYC?

    Broker fees in NYC are usually capped at 15% of the annual rent. Be aware that state regulations might limit these fees within a certain range. Always verify the current regulations to understand the specific limits applicable to your situation.

    Is it possible for tenants to negotiate the amount of the broker fee with brokers in New York City?

    Yes, you can negotiate the broker fee. Although fees are typically within a standard range, there is room for discussion based on your circumstances and the broker’s willingness.

    What exactly does a broker fee encompass for renters in NYC?

    The broker fee typically includes the services provided by the real estate agent in finding you an apartment, which involves time and effort in locating available properties that meet your preferences and needs.

    What is the broker fee bill and how does it affect renters and brokers in New York City?

    The broker fee bill is proposed legislation that could alter who is responsible for paying broker fees and under what conditions. Its impact on both renters and brokers in New York City would be dependent on the specifics of the bill once passed and enacted.

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    Final Words

    Recent regulations aim to ease the financial burden on renters, with fees now limited to 0.3–15% of the first year’s rent.

    Tenants have new rights, including caps on security deposits and application fees, while landlords and agents may need to absorb broker fees, adjusting their strategies accordingly.

    It’s important for tenants to inquire about fee responsibility upfront and to take steps if overcharged, including reviewing leases, consulting laws, and contacting brokers directly.

    Stay informed and negotiate when possible to navigate NYC’s rental market effectively.

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    Srdjan Ilic

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