The Fair Access to Renting Effectively (FARE) Act went into effect on June 11, 2025, fundamentally changing how broker fees work in New York City. Here's what we've observed after six months.
Key Changes Under the FARE Act
- Landlord-Hired Brokers: When a landlord hires a broker, the landlord must pay the broker fee—not the tenant
- Tenant Choice: Tenants can still hire their own broker and pay that fee if they choose
- Fee Disclosure: All listings must clearly disclose all fees upfront
- Itemized Costs: Landlords must provide a written itemized list of all fees before lease signing
Market Impact: What We're Seeing
The market has adapted in several ways:
- Rental Prices: Some landlords have adjusted asking rents to offset broker costs, though competition keeps this in check
- Direct Listings: More landlords are listing directly without brokers
- Tenant Representation: Tenants are increasingly seeking their own representation, especially in competitive markets
- Transparency: Overall fee transparency has improved significantly
What This Means for Renters
If you're searching for an apartment in NYC:
- Ask upfront who hired the broker and who pays the fee
- Request itemized fee documentation before signing anything
- Know that you can hire your own broker to represent your interests
- File a complaint with NYC DCWP if you experience violations
Looking Ahead
As the market continues to adjust, we expect further clarification from regulators and continued evolution of how rental transactions are structured. The goal remains the same: fairer, more transparent rental transactions for everyone.
Need Help Navigating the New Rules?
I'm here to help you understand your rights and find the right rental.
Contact Me
