August 19, 2025
If you’ve been hunting for a rental in New York City this summer, you’ve probably noticed some changes in the market. As a local realtor, I’ve been closely following the effects of the FARE Act, which officially took effect in June 2025.
The law was meant to help renters by shifting the responsibility of broker fees onto landlords — but it’s already clear it’s coming with some trade-offs.
The idea behind the FARE Act is simple: if the landlord hires a broker, the landlord should pay their fee. This was long overdue, considering how expensive moving in NYC can be. Broker fees often run into the thousands, sometimes equal to 15% of the annual rent. So on paper, this sounded like a win for tenants.
But here’s what’s really happening in the market.
Almost immediately after the law took effect, we started seeing landlords raise rents—often by hundreds of dollars. According to StreetEasy data, over 1,300 listings spiked their rent prices by at least 5% right when the law kicked in.
The typical asking rent went from $4,000 to $4,200 within weeks. To put it into perspective, June is always a busy season, but this year’s rent hikes were far more aggressive than in previous summers.
Many of the big brokerages—Compass, Corcoran, Douglas Elliman—were behind these increases. Essentially, landlords are shifting the broker cost into your monthly rent. Like StreetEasy’s economist put it: “there’s no free lunch.”
On top of the rent spikes, the confusion has opened the door to some shady practices. The city has already received hundreds of complaints from renters who were improperly asked to pay broker fees despite the law.
I’ve heard from clients that brokers are trying to claim they were “hired” by the tenant just to charge a fee, or manipulating paperwork to look like a tenant-led hire. It's causing headaches for renters, especially those unfamiliar with the city’s complicated rental process.
Let’s be clear: under the new law, if you didn’t directly hire the broker, you are not responsible for paying the fee. Always ask for documentation and don’t be afraid to walk away from shady deals. The Department of Consumer and Worker Protection is investigating violations, and you can absolutely file a complaint if you experience this.
However, one thing has become obvious in the market — moving may be cheaper upfront without a broker fee, but landlords are making up the difference on the back end through higher rents. Supply is still extremely tight, and demand is fierce.
This new law doesn’t fix the underlying issue of low housing supply, and until we see more units on the market, it’s the renters who will keep feeling the pinch.
If you’re navigating this market, it’s more important than ever to have an experienced, transparent realtor on your side. Someone who can help you avoid scams, find no-fee rentals, and negotiate where possible. The landscape is shifting, but having someone knowledgeable in your corner can make all the difference.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
