June 28, 2025
This week, New York City’s rental market is facing a major shake-up—and if you're a renter, you might finally catch a break.
Starting Wednesday, June 11, the FARE Act (Fairness in Apartment Rental Expenses) officially kicks in. Simply put: if a landlord hires a broker, the landlord pays the fee. If a tenant hires a broker, the tenant pays. No more forking over thousands to someone you didn’t hire just to get approved for a one-bedroom.
That’s a big win for renters. For years, hefty broker fees—sometimes upward of 15% of annual rent—have priced people out before they could even unpack a box. According to StreetEasy, upfront rental costs could drop nearly 42%, making the move-in process less financially crushing.
But of course, in true New York fashion, things are never that simple.
Landlords aren’t exactly thrilled. Some are already raising rents to make up the difference. Others are trying to skip brokers altogether and go straight to tenants—an unexpected twist in the world of NYC leasing.
While some fear this could cause chaos, the data suggests otherwise: most no-fee rentals still have broker involvement, and many landlords have already been covering those fees behind the scenes.
As a realtor, I expect this law to push our industry to be more transparent and competitive. It's going to separate the true professionals—those who bring real value—from those who relied on the system to get paid, even when tenants didn’t seek their services.
Will this fix everything? No. But it’s a long-overdue correction that levels the playing field and helps renters breathe a little easier.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
