The Fairness in Apartment Rental Expenses (FARE) Act went into effect on June 11, 2025 and will change how broker fees are handled in New York City. This new law shifts most broker fees from renters to landlords, helping reduce the high upfront costs of moving.
What is the FARE Act?
The FARE Act shifts the financial responsibility of broker fees from tenants to landlords but only when the landlord is the one who hires the broker or real estate agent to lease the unit. If a renter chooses to work with a broker on their own, they’ll still be expected to cover that cost themselves.
Landlords must also disclose all fees that tenants will pay to rent an apartment before tenants sign a rental agreement.
When Does the FARE Act Take Effect?
The FARE Act became effective on June 11, 2025, and it applies to all lease agreements signed from that date onward.
Key Impact for Renters
Lower Upfront Costs: Renters are no longer responsible for broker fees when the landlord hires the broker - this could save thousands at move-in.
Possible Rent Increases: Some concerns have been raised that landlords might raise monthly rent to offset the extra cost of paying broker fees themselves. However, units that are rent-stabilized or protected under Good Cause Eviction laws are shielded from sharp rent hikes.
When Will Renters Still Pay Broker Fees?
Renters who hire their own broker or agent directly will still pay the broker fee.
Enforcement and Penalties
Brokers must clearly disclose whom they represent before signing any contract.
All charges must be clearly listed in the rental agreement before signing.
If a fee looks unusual or inflated, ask what it covers. If the explanation isn’t clear, the listing could be in violation. Landlords and agents who don’t follow the rules may face penalties. Before signing ensure all fees are clearly documented in writing.
The FARE Act aims to reduce the upfront financial burden on renters. Understanding your rights and the new rules will help you navigate the NYC rental market.
For more information or to report violations, contact the NYC Department of Consumer and Worker Protection.