The FARE Act Explained: Who Pays the Broker Fee on NYC Rentals Now?
The Fairness in Apartment Rentals Act ended landlord-paid broker fees being passed to tenants. What the law actually changed and who pays what.
The FARE Act (Fairness in Apartment Rentals) is a NYC law that took effect in June 2025. The bottom line: if a landlord hires a broker to list an apartment, the landlord pays that broker — not the renter.
For decades, NYC was an outlier in pushing 12–15% one-time broker fees onto renters who never asked for the broker in the first place. That's largely over for landlord-listed units.
Renters who hire their own broker still pay that broker. Here's what's actually changed and what hasn't.
The basic rule: who hired the broker pays the broker
The FARE Act applies to most NYC residential rentals. The principle is straightforward: the party that engages a broker pays that broker.
Three common scenarios:
- Landlord lists with a broker — landlord pays the broker. The renter does not pay the broker fee, and a landlord cannot pass through that fee to the renter as a separate line item.
- Renter hires their own broker to find a place — renter pays that broker. This is the same as it always was.
- Direct landlord listing (no broker involved) — no broker fee at all. Some buildings list directly through their management; if there's no broker, there's no fee.
The law also requires upfront, written disclosure of all fees a renter will pay before they sign anything, and bans charging brokerage fees that aren't actually for brokerage services.
What landlords have done in response, and what to watch for
Predictably, landlords who used to pass broker fees to tenants have absorbed some of that cost into rent. Asking rents on previously broker-fee units bumped 5 to 10% in many cases.
The honest framing: you're not getting a free lunch — you're paying that broker fee amortized over your lease, but in exchange you don't write a $5,000 to $7,000 check on day one. Over a 12-month lease that math is roughly neutral; over a 24-month lease the renter usually wins because the broker fee was a one-time cost that you'd have re-paid moving anyway.
Things to watch for as a renter:
- Hidden "amenity fees" or "move-in fees" that look suspiciously like broker fees with a different label (the law specifically bans this)
- Language in the lease saying you owe a separate broker fee even though the listing was the landlord's
- Listings that try to require you to use a specific broker as a precondition for applying
If something feels off, ask for the FARE Act fee disclosure in writing — that's required.
When it still makes sense to hire your own broker
Hiring your own rental broker still makes sense in three situations:
- You're moving from out of town and need someone to scout, screen, and prep the application before you fly in for one weekend of viewings — paying a renter-side fee for that compressed search can save you weeks.
- You have a complex profile (self-employed, foreign income, recent move to a new job, guarantor structure) and you need someone to package your application so it actually gets approved.
- You want access to the off-market or quiet-market inventory landlords don't list publicly.
Outside those cases, most renters in NYC right now don't need a broker. The supply of landlord-listed (no-fee-to-renter) units has gone up substantially since the FARE Act took effect, and you can find a perfectly good apartment without paying a renter-side broker fee.
If you're a renter trying to figure out whether a listing is FARE Act compliant, or whether the fees you're being asked to pay are legit, the disclosure is your friend — every legitimate listing must show you, in writing, who pays what before you sign. If you want a sanity check on a specific lease or a building, call or text 646.939.7375.
Frequently asked questions.
Who pays the broker fee on NYC rentals under the FARE Act?
Under the FARE Act, which took effect in June 2025, the party that hires the broker pays that broker. If a landlord lists an apartment with a broker, the landlord pays, and cannot pass that fee through to the renter as a separate line item. If you hire your own broker to find a place, you still pay that broker, just as before.
Did rents go up because of the FARE Act?
Yes, in many cases. Landlords who used to pass broker fees to tenants have absorbed some of that cost into rent, and asking rents on previously broker-fee units bumped 5 to 10%. The honest framing is that you are paying that fee amortized over your lease instead of writing a $5,000 to $7,000 check on day one. Over a 12-month lease the math is roughly neutral, and over a 24-month lease the renter usually comes out ahead.
Can a landlord still charge me a broker fee if they hired the broker?
No. When the listing is the landlord's, the renter does not pay that broker fee and the landlord cannot re-label it. Watch for hidden amenity fees or move-in fees that look like broker fees under a different name, or lease language saying you owe a separate broker fee, because the law specifically bans this. If something feels off, ask for the FARE Act fee disclosure in writing, which is required.
Do I still need a broker to rent an apartment in NYC?
Most renters in NYC right now do not need one. The supply of landlord-listed units with no fee to the renter has gone up substantially since the FARE Act took effect, so you can find a good apartment without paying a renter-side fee. Hiring your own broker still makes sense if you are moving from out of town, have a complex application profile, or want access to off-market inventory.
What disclosure am I entitled to before signing a lease?
The FARE Act requires upfront, written disclosure of all the fees a renter will pay before signing anything. Every legitimate listing must show you, in writing, who pays what. The law also bans charging brokerage fees that are not actually for brokerage services, so the disclosure is your best tool for checking whether the fees you are asked to pay are legitimate.
Are there rentals with no broker fee at all?
Yes. Some buildings list directly through their management with no broker involved, and when there is no broker there is no fee. Since the FARE Act took effect, the supply of these landlord-listed, no-fee-to-renter units has gone up substantially.
