Another 'Keeping Newark Affordable' tool becomes law

What happened

Mayor Ras J.

Instead, landlords and agents must pay all fees imposed by the brokers engaged by them.

Key details

Under this legislation, a landlord cannot recover a broker’s fee from a tenant in another form.

Landlords, owners and developers remain free to hire brokers and to pay them.

The ordinance also adds transparency by requiring all tenant fees be listed and advertised in a clear and conspicuous manner.

Additionally, this initiative makes it illegal to require or condition the leasing of a residential property on the terms that a tenant engages with a brokerage firm or agent.

Violations carry a fine of up to $1,250 and each improper fee charged to a tenant counts as a separate violation.

Background and context

The ordinance is a companion to similar legislation under discussion before the New Jersey Legislature, reflecting ongoing State concern regarding the impact of such charges on people seeking rental housing.

In addition, prior to the signing of a lease, the landlord or agent must provide the tenant an itemized written disclosure that details all fees that the tenant must pay and the penalties that a landlord must pay for violating the ordinance.

What officials said

Baraka today announced that the Municipal Council has unanimously approved his proposed ordinance to prevent owners and their agents from charging tenants brokers fees to rent a place to live.

This is another tool supporting his “Keeping Newark Affordable” multi-pronged legislation package.

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,” said Mayor Baraka.

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.

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.

Why it matters to residents

Additionally, landlords may not raise the rent or add fees to pass that cost along, and they may not ask a tenant for reimbursement.

The ordinance is enforced by the Division of Rent Control in the Department of Economic and Housing Development and by the Newark Department of Public Safety.

What happens next

Rental applications must include a statement, signed by the landlord, affirming that no brokerage fees will be charged to the tenant.

The ordinance takes effect 20 days after passage and publication, as required by law.

Legal note: Charges and allegations are accusations. A defendant is presumed innocent unless proven guilty in court.

Source and attribution: Jersey Alerts reviewed the primary official release from City of Newark Official and any additional sources identified above. Names, dates, figures, quotations, claims and characterizations remain attributed to their cited source unless Jersey Alerts states that they were independently confirmed.

Read the official release