Newark Rental Policy Update: What Landlords and Tenants Need to Know
A new Newark rental policy is changing how broker fees are handled for residential rentals.
The City of Newark has approved a new ordinance that prohibits landlords and their agents from charging tenants a broker’s fee when renting a residential property. Under the new policy, landlords, owners, developers, and their agents are responsible for paying broker fees associated with brokers they engage.
What Does the New Policy Mean?
Previously, tenants in Newark could be responsible for a broker fee in addition to their security deposit and other moving expenses. Under the new ordinance, landlords cannot pass a broker’s fee on to the tenant, whether directly or through another charge.
The policy also prohibits landlords from increasing rent or adding another fee specifically to recover the broker’s fee from the tenant.
Greater Transparency for Renters
The ordinance also introduces additional disclosure requirements. Rental fees must be clearly and conspicuously advertised, and before a lease is signed, the landlord or agent must provide an itemized written disclosure identifying the fees the tenant is required to pay.
Rental applications must also include a statement signed by the landlord confirming that the tenant will not be charged a brokerage fee.
What Landlords Should Know
Landlords who rent residential properties in Newark should review their rental advertising, applications, lease procedures, and fee disclosures to ensure they comply with the new requirements.
Landlords may still hire real estate brokers and agents. However, under the ordinance, the broker fees imposed by brokers engaged by the landlord must be paid by the landlord rather than charged to the tenant.
Violations may result in fines of up to $1,250, with each improper fee charged to a tenant potentially constituting a separate violation.
What Tenants Should Know
For renters, the new policy may change the upfront costs associated with securing a Newark rental. While tenants may still be responsible for other lawful rental costs, they should receive clear information about all required fees before signing a lease.
If you are considering renting in Newark, carefully review the rental listing, application, fee disclosures, and lease before making any payment.
When Does the Policy Take Effect?
The City of Newark announced that the ordinance takes effect 20 days after passage and publication, as required by law. Renters and property owners should pay attention to the effective date and ensure that transactions occurring after the effective date follow the new requirements.
A Changing Newark Rental Market
Newark’s rental regulations continue to evolve, making it important for both property owners and renters to stay informed. Understanding current requirements can help landlords prepare their rental properties and help tenants better understand the costs associated with renting.
Planning to rent, list, or manage a property in Newark? Working with a knowledgeable real estate professional can help you navigate the latest rental requirements and prepare for changes in the local market.
This article is for general informational purposes and is not legal advice. Rental laws and regulations may change. Consult the City of Newark or a qualified attorney for guidance regarding a specific situation.