July 15, 2025
For decades, paying thousands of dollars upfront just to move into a New York City apartment has been part of the painful rental process. But that’s finally changing.
As of June 11, the Fairness in Apartment Rental Expenses (FARE) Act officially goes into effect, reshaping how broker fees are handled in NYC—and it’s a big win for renters.
Under the new law, if a landlord hires a broker to market their apartment, they are responsible for paying that broker’s fee. Tenants will only pay a fee if they hire a broker themselves. In simple terms: whoever does the hiring does the paying.
This is a major shift in a city where roughly half of all leases involved broker fees last year, sometimes as high as 15% of the annual rent. On a $3,000/month apartment, that’s over $5,000 just to sign a lease.
StreetEasy estimates that the average upfront cost of moving will drop by more than 40%. For many renters—especially first-timers, young professionals, and lower-income residents—that’s the difference between being able to move or staying stuck in place.
As you’d expect, not everyone is thrilled. Landlords and major real estate groups like REBNY have pushed back hard, arguing it will drive up rents and reduce available listings. Their lawsuit against the law is still ongoing, though a judge recently refused to delay the rollout.
Still, early market trends suggest that rent increases tied to brokered units have only slightly outpaced non-brokered ones, by less than 1%. And unlike a massive broker fee due upfront, any rent bumps are spread across the year, which renters may find more manageable.
The bottom line?
If you're apartment hunting this summer and you didn't directly hire the broker, you shouldn't be paying a broker fee. Period.
Landlords and brokers are now legally required to disclose all tenant charges in writing—and if someone tries to sneak in an illegal fee, renters can report it to the city by calling 311 or visiting nyc.gov/consumers.
As a local realtor, I’ve seen the tension from both sides—tenants who feel like they’re getting fleeced, and landlords adjusting to a new system. This law is going to change the dynamic in NYC leasing, whether we like it or not.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
