July 09, 2025
The Fairness in Apartment Rental Expenses Act, or FARE Act, officially went into effect on June 11 — and it's shifting the dynamic between landlords, tenants, and real estate agents across New York City. If you're a renter gearing up to sign a lease, it's critical to understand what this means for your wallet and your rights.
For decades, NYC stood apart from most of the country by allowing landlords to hire brokers and pass the cost of those commissions directly onto tenants — often thousands of dollars due upfront. That’s no longer allowed.
Here's the key takeaway: whoever hires the agent is the one responsible for paying them. If a landlord hires a broker to list an apartment, then the landlord foots the bill. If a tenant hires an agent to help them find a place, they’ll still be expected to cover that commission. Fees remain negotiable, but what’s changing is the transparency — and the accountability.
As a realtor myself, I can say this law is long overdue. It brings NYC in line with how the rest of the country handles rentals and removes a huge barrier for renters trying to secure housing. But it’s important to set expectations: broker fees haven't been eliminated. They’ve just been reassigned to the correct party.
Another critical detail? All fees related to a rental — from background checks to credit reports — must now be disclosed upfront in a clear and noticeable way. No more hidden charges buried in fine print. Landlords and brokers who fail to comply risk hefty fines, up to $2,000 from the city and another $2,000 from the state.
There’s still some confusion out there, especially with media and social platforms spreading the idea that all broker fees are gone. That’s not true. But for most renters who weren’t choosing to hire a broker in the first place, this law can shave thousands off move-in costs.
For brokers, this isn’t all bad news either. It helps legitimize the value of our work. Renting is no small task — from marketing listings to vetting applicants, it’s a serious time investment. Now, the people hiring us are the ones paying, and that clarity is a win for everyone.
If you're navigating NYC's rental market this summer, take the time to read the listing carefully, ask direct questions about fees, and make sure any broker involved is working on your behalf — not just the landlord’s.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
