May 10, 2025
Big changes are coming to the NYC rental market this summer — and if you’re a renter, they’re actually in your favor.
Starting June 11, the new FARE Act (short for "Fairness in Apartment Rental Expenses") will shift the burden of paying broker fees from tenants to landlords — as long as the landlord is the one who hired the broker.
If this law holds up in court, it could save renters thousands in upfront costs and change the way apartments are rented across the city.
If you’ve ever been frustrated paying 12–15% of your annual rent — on top of your first month’s rent, security deposit, and moving costs — just to get into a unit, you’re not alone.
In fact, the average upfront cost of moving in NYC was nearly $13,000 last year. That's not exactly pocket change.
So, why now?
With listings now easily accessible online through platforms like StreetEasy and RentHop, renters are doing more of the legwork themselves. In many cases, the broker involved is really serving the landlord, not the tenant — yet it’s the tenant who’s footing the bill. That’s what the FARE Act is aiming to change.
How will this impact the rental market?
The real estate industry, including REBNY (the Real Estate Board of New York), has strongly opposed the legislation. They argue the law is vague, will lead to higher rents, and could slow down listings if brokers are discouraged from marketing properties.
They've even filed a lawsuit to stop it, claiming that only the state — not the city — has the power to regulate broker conduct.
But supporters of the law, including Councilman Chi Ossé (who sponsored the bill), say the fear of skyrocketing rents is overblown. Landlords still need to fill their units, and if the demand isn’t there, the rent won’t climb far.
According to StreetEasy, over half of their listings in March were already marked as “no fee,” showing that landlords are willing to eat the broker cost when needed.
What’s next?
Unless a judge intervenes, the law will take effect in June. That means if a landlord hires a broker, they should be the ones paying for it — not you. Renters who hire their own brokers, however, would still be responsible for those fees.
If you're planning to move this summer, this law could ease some of the financial sting. But keep your eyes open. Some landlords or brokers may try to work around the law, and enforcement details are still being worked out.
Whether you're a renter or an agent, this summer is going to be one to watch.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
