May 12, 2025
The way we do rentals in NYC is about to shift — big time. Come mid-June, a new law is expected to take effect that could seriously change how broker fees work in residential rentals.
If you’re a broker or landlord, it’s time to pay attention — because the penalties are no joke.
Under the Fairness in Apartment Rental Expenses Act (FARE Act), landlords and agents who charge a tenant a broker fee — without being hired by that tenant — could face fines starting at $750 and climbing to $2,000 per violation.
Even worse? That fee will need to be refunded. You’ll also get slapped with fines for not clearly disclosing fees in your listings or for failing to provide an itemized fee list.
These rules are designed to protect renters from surprise charges and ease the insane upfront costs that come with finding an apartment in this city.
Let’s be honest: broker fees have been a sore subject for years. In NYC, tenants often pay thousands in broker fees for someone they didn’t even choose to work with.
That’s what this law is trying to address — and now, the Department of Consumer and Worker Protection is making it clear: if you don’t follow the rules, there will be consequences.
Not everyone in the industry is thrilled. The Real Estate Board of New York (REBNY) is fighting the law in federal court, arguing that it unfairly targets brokers.
Even Mayor Adams didn’t sign off on it — he let it pass without his signature. But the City Council pushed it through with overwhelming support, and now, even Governor Hochul is on board, calling for broker fees to end “forever.”
There’s still a public hearing on May 14 before the penalties are finalized, and a court decision could delay things, but as of now, the message is clear: if you’re representing the landlord, the landlord needs to foot the bill — not the tenant.
As brokers, we’ve got to stay ahead of the curve. That means adjusting how we operate, being crystal clear with tenants about fees, and making sure every listing is compliant.
Whether we agree with the law or not, it’s here — and ignoring it could be a costly mistake.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
