The New York City Council has passed a ban on renters being forced to pay broker fees when moving into a new apartment.
The system has long burdened renters.
The bill was approved despite strong opposition from real estate brokers.
The legislation shifts the fee to landlords. There is nothing to stop them from simply raising the rents they charge to cover the costs, though.
New York City has steep broker fees, which often cost tenants up to 15% of the first year's rent.
It can add thousands of dollars to the money renters need to come up with ahead of signing a lease.
The legislation, passed by a 42-8 vote, represents a major win for renters and tenant advocacy groups, who have been calling for the change for years, Bloomberg reported.
Many view the practice of tenants paying broker fees as an outdated system that no longer fits the modern housing market, where listings are online and self-guided tours are increasingly popular.
Brokers argue that the law will negatively impact their industry, which employs more than 25,000 people in the city.
"This is the start of a top-down, government-controlled housing system," Jordan Silver, a broker with Brown Harris Stevens, told the Associated Press.
Many New Yorkers believe the change will make it easier for renters to find housing.
"Anyone who has paid 15% of their annual rent for someone to let you in an apartment for 10 minutes knows the practice is nothing more than legalized theft," tech investor Bradley Tusk told the AP.
Mayor Eric Adams expressed concerns over the bill but the veto-proof majority vote signals that the law is due to go into effect in six months.
