Since June 2025, NYC landlords — not tenants — have been on the hook for broker fees when they hire the agent. Here’s what’s changed, and what’s still being contested.
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What the Law Does
The FARE Act (Fairness in Apartment Rental Expenses) took effect June 11, 2025. It prohibits landlords from passing the cost of a broker they hired on to prospective tenants, and it requires landlords to disclose all fees a tenant will owe before a lease is signed. Before the law, renters routinely paid 10% to 15%, and sometimes as much as 20%, of a full year’s rent in broker fees just to secure an apartment.
Who Enforces It
The NYC Department of Consumer and Worker Protection enforces the FARE Act. A landlord who hires a broker to market a unit must pay that broker’s fee directly; tenants can report violations, and landlords face civil penalties of up to $2,000 per violation.
The Ongoing Pushback
The Real Estate Board of New York filed suit in Manhattan federal court seeking to block the law, arguing it oversteps the city’s authority. Separately, some market analyses suggest landlords are responding by building broker costs into advertised rents rather than absorbing them outright — worth knowing if you’re comparing listings.
What Renters Should Do
If a broker fee shows up on a lease for a unit the landlord listed, ask who hired that broker. You’re entitled to a clear, upfront breakdown of every fee before you sign — and you’re not required to pay a fee for a broker you didn’t engage yourself.
Questions About How This Affects Your Building?
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