June 26, 2025
New York City may be on the verge of a massive shake-up in its rental market. A new law set to go into effect this week would ban most broker fees for tenants—unless the tenant themselves hires the broker.
That means no more coughing up $4,000 to $5,000 upfront just to get the keys to a $3,000-a-month apartment. And for renters trying to get a foothold in NYC’s market, that’s huge.
But this change isn’t without resistance. A lawsuit filed by the Real Estate Board of New York and several brokerages is still pending, but unless a judge steps in at the last minute, the city’s Department of Consumer and Worker Protection will begin enforcing the law immediately.
So, what’s changing? Under this law, landlords must foot the bill for any broker they hire to rent their unit. If a tenant hires a broker to help them search—by choice—they still pay. That’s a major shift from the current norm, where renters often pay thousands in fees even if they never directly asked for a broker's help.
For renters, this could significantly reduce upfront costs. According to StreetEasy, average move-in expenses can reach nearly $13,000 when including broker fees, moving costs, and the security deposit.
Eliminating tenant-paid broker fees could open the door for more mobility, especially for renters who previously stayed put simply to avoid the price tag of moving.
For landlords, especially smaller owners, many are already preparing to absorb the broker cost themselves. In reality, that might just be a month’s rent—a cost that may be baked into the rent over time.
That’s the part some critics worry about: Will landlords raise rents to cover the cost? Maybe. But it’s worth noting that no-fee listings have already become more common in recent years, and many argue this law is just catching up to where the market is already heading.
Some brokers are understandably anxious about what this means for their income, especially those who built their business around tenant-paid fees. But as a broker myself, here’s my take: this isn’t the end—it’s a shift. It’s time to lean into transparency and work directly with landlords on leasing strategies. Fewer hurdles for renters could mean faster turnover, more leases, and ultimately more volume for us.
This new law forces the industry to rethink how we do business—but it also gives us an opportunity to rebuild trust with renters, who’ve long felt frustrated by the broker fee system. Like any change, it’ll take time to adjust. But from where I stand, the path forward is clearer than ever: adapt, serve, and stay honest.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
