New York City Enacts the Fairness in Apartment Rental Expenses (FARE) Act

New York City introduces the FARE Act, eliminating broker fees for tenants unless they hire the broker themselves.

On June 11, 2025, New York City officially implemented the Fairness in Apartment Rental Expenses (FARE) Act, a landmark reform aimed at easing the financial burden on renters in one of the country’s most expensive housing markets. Historically, tenants were often required to pay broker fees that could amount to 10-15% of the annual rent—fees which frequently translated into thousands of dollars upfront, making it harder for renters, especially first-time renters and low-income households, to secure housing.

The FARE Act shifts the responsibility for broker fees from tenants to landlords, except in cases where the tenant directly hires the broker. This change is expected to reduce the initial moving costs for renters substantially, enabling greater access to the rental market. By mandating that landlords cover these fees, the Act attempts to level the playing field and prevent exploitative fee practices that disproportionately impact vulnerable populations.

Additionally, the Act requires complete transparency by mandating that all tenant-paid fees be clearly disclosed in rental listings. This provision aims to eliminate hidden or surprise charges that renters might otherwise encounter during the application or lease signing process. Transparency advocates believe this will foster fairer competition and more informed decision-making among renters.

Despite the benefits for tenants, some real estate industry groups warn that landlords might offset these additional costs by increasing monthly rents or reducing investment in property maintenance. Early data since the law’s enactment shows signs of rent adjustments in certain neighborhoods, prompting ongoing debate over the law’s long-term economic impact on both renters and property owners.

Overall, the FARE Act marks a significant policy shift in New York City’s rental market, reflecting broader trends across major urban centers seeking to address housing affordability through tenant protections. The law’s implementation will continue to be closely monitored by policymakers, landlords, tenants, and advocacy groups alike as the city balances renter relief with market realities.

https://www.cbsnews.com/newyork/news/broker-fee-nyc-law-fare-act/