More Advocacy Against Forcing Property Owners to Pay All Broker Fees
By Demetrios Salpoglou
It was my pleasure to represent SPOA and Boston Pads last month when I spoke to Sharman Sacchetti from WCVB ABC Channel 5 News about a wide range of key real estate issues, including but not limited to: the current real time vacancy rate, the high demand for housing in Boston, low supply, and how 30 percent of rental housing providers currently cover some or all of the broker fees. After the New York City Council recently mandated that owners pay all broker fees, the debate has returned to Boston. As mentioned in the December 2024 edition of Small Property Owners News, which covered my interview with NBC 10 News Boston about this issue, the root cause of the broker fee dilemma will not be addressed by shifting the financial burden to property owners. Small rental property owners, in particular, will be harmed by this and they will be forced to raise their rents to cover this additional expense, among other high expenses that come with property ownership. We should instead look to alleviate pressures on both renters and owners by offering flexible and gradual payment options for broker fees, rather than demanding full payment upfront, while promoting zoning reform to incentivize the creation of additional supply, which is what's needed to bring costs down in the long-term.WCVB Channel 5 ABC Boston- Demetrios Salpoglou talks Broker´s Fees
by Demetrios Salpoglou
Frequently Asked Questions
What is the current situation with broker fees in Boston?
Many rental housing providers in Boston are currently covering some or all of the broker fees. This debate has resurfaced following a recent mandate by the New York City Council which requires owners to pay all broker fees.
What are the potential consequences of forcing property owners to pay all broker fees?
The article argues that forcing property owners to pay all broker fees will not solve the core issue. It suggests that small rental property owners, already burdened by high expenses, will likely raise rents to compensate for this additional cost.
What are alternative solutions to the broker fee dilemma?
The author proposes alleviating pressures on both renters and owners by offering flexible, gradual payment options for broker fees instead of upfront payment. Additionally, promoting zoning reform to increase housing supply is suggested as a long-term solution to reduce costs.
Why are broker fees a concern for property owners and renters?
The article highlights that the increase in broker fees is often due to the low supply and high demand for housing in Boston. Property owners face various other expenses, and adding broker fees can exacerbate their financial difficulties.