You found the perfect apartment. The rent is $3,500 a month—challenging but manageable. Then the broker drops the bomb: you owe a $5,250 broker fee. That's 15% of your annual rent, due immediately, just to sign a lease for an apartment you found yourself online.
This frustrating scenario used to be standard practice in New York City. But as of June 11, 2025, everything changed. The Fairness in Apartment Rental Expenses Act—better known as the FARE Act—fundamentally transformed who pays broker fees in NYC's rental market.
If you're apartment hunting or planning your move, understanding these new rules could save you thousands of dollars in upfront costs. Before you call your trusted NYC movers, let's break down exactly what the FARE Act means for you and how it changes the game for NYC renters.
What is the FARE Act?
The Fairness in Apartment Rental Expenses Act is a New York City law passed by the City Council on November 13, 2024, with an overwhelming 42 out of 51 votes. Mayor Eric Adams neither signed nor vetoed the bill, allowing it to automatically become law after 30 days. The legislation took effect 180 days later on June 11, 2025.
The law addresses a simple but powerful principle: whoever hires a broker should pay that broker's fee. In practice, this means landlords who hire brokers to market their apartments must now pay those brokers themselves rather than passing the cost onto tenants.
The Old System: Why NYC Renters Were Paying Broker Fees
To understand why the FARE Act matters, you need to understand how broken the old system was. New York City was one of the only places in the United States where tenants routinely paid broker fees for services they didn't request.
Here's how it typically worked before the FARE Act:
- A landlord hired a broker to market and rent their apartment
- The broker listed the apartment on StreetEasy, Zillow, or other platforms
- You found the listing yourself online
- You contacted the broker, saw the apartment, and wanted to rent it
- The broker demanded you pay their fee—typically 10-15% of annual rent
- You had no choice but to pay if you wanted the apartment
The absurdity? You were paying someone the landlord hired to do the landlord's work. It's like going to a restaurant and being charged for the chef the owner hired to cook your meal.
This practice made NYC's already expensive rental market even more brutal. The average upfront cost to move into a rental in 2024 was $12,951, with broker fees making up a significant chunk of that total. For a typical $3,000 per month apartment, tenants faced upfront costs including:
- First month's rent: $3,000
- Security deposit: $3,000
- Broker fee: $4,500-$5,400 (15% of annual rent)
- Application fees, background checks, and other costs: $500-$1,000
That's $11,000-$12,400 due before you even move a single box. This system created massive barriers for working-class New Yorkers, first-time renters, students, and anyone trying to relocate to the city.
The New Rules: How the FARE Act Changes Everything
Under the FARE Act, the party who hires the broker must pay the broker's fee. Since landlords are the ones hiring brokers to list and market their apartments, they must now pay those fees themselves.
What the FARE Act Prohibits
- Landlords cannot pass broker fees to tenants when the landlord hired the broker
- Listing agents cannot charge tenants for apartments they advertise on behalf of landlords
- No one can require tenants to hire a broker as a condition of renting an apartment
- Brokers cannot condition apartment availability on tenants hiring them as their representative
What the FARE Act Requires
- Full fee disclosure in all listings: Every apartment advertisement must clearly disclose all fees tenants will be charged
- Written fee itemization: Before signing a lease, landlords must provide an itemized written disclosure of every fee
- Clear advertising: Rental listings on platforms like StreetEasy must show both one-time and recurring fees
- Transparency in broker relationships: The law establishes a presumption that any broker advertising a unit works for the landlord unless clearly stated otherwise
How Much Money Will You Actually Save?
The financial impact of the FARE Act for NYC renters is substantial. StreetEasy estimates that average upfront moving costs will drop from approximately $13,000 to around $7,500—a savings of $5,500 or more for the typical renter.
Let's break down real-world savings for different apartment price points:
For a $2,500/month apartment:
- Old system broker fee: $3,750-$4,500
- New system: $0 (landlord pays)
- Your savings: $3,750-$4,500
For a $3,500/month apartment:
- Old system broker fee: $5,250-$6,300
- New system: $0 (landlord pays)
- Your savings: $5,250-$6,300
For a $4,500/month apartment:
- Old system broker fee: $6,750-$8,100
- New system: $0 (landlord pays)
- Your savings: $6,750-$8,100
These savings make a dramatic difference in housing accessibility. That $5,000-$6,000 you're no longer paying upfront could cover your professional moving costs, new furniture, or simply stay in your savings account for emergencies.
Important Exception: When You Can Still Pay a Broker Fee
The FARE Act doesn't eliminate all broker fees—it just ensures you only pay when you actively choose to hire a broker yourself. You may still voluntarily hire a tenant broker (also called a renter's agent) in these situations:
- You initiate the relationship: You reach out to a broker asking them to help you apartment hunt
- You want professional guidance: You're new to NYC or overwhelmed by the rental process and want expert assistance
- You need access to exclusive listings: Some apartments are shown only to brokers before being publicly listed
- You're on a tight timeline: You need someone to schedule multiple showings quickly and negotiate on your behalf
- You want representation: You'd like someone advocating for your interests during lease negotiations
If you choose to hire your own broker, you're responsible for paying their fee. However, this is fundamentally different from the old system because you're making an informed choice to pay for services you want, rather than being forced to pay for services the landlord requested.
The key difference: it's your decision. If you don't need or want broker services, you're no longer forced to pay for them.
Will Landlords Raise Rents to Cover Broker Fees?
This is the most common concern people have about the FARE Act. The fear is logical: if landlords now have to pay broker fees themselves, won't they just increase rents to compensate?
While this is a valid question, data suggests the impact may be minimal for several important reasons:
Market Forces Set Rents, Not Landlord Costs
StreetEasy economist Kenny Lee explains it clearly: "Asking rents are primarily driven by market conditions, rather than solely by property managers' costs. The demand and supply dynamics are really the core drivers of the asking rent." Understanding average rents in NYC helps clarify these dynamics.
In other words, landlords already charge the maximum rent the market will bear. They can't simply add $200-$300 per month to cover broker fees if comparable apartments in the neighborhood rent for less. The competitive rental market places real limits on arbitrary price increases.
Historical Data Shows Minimal Impact
StreetEasy analyzed rental data from 2012 to 2024 and found something surprising: apartments that were already "no-fee" (where landlords paid brokers) actually experienced lower average annual rent increases (4.2%) compared to apartments with tenant-paid broker fees (6.1%).
This suggests that shifting broker fee responsibility to landlords doesn't necessarily drive rent increases—and may even correlate with more moderate rent growth.
Nearly Half of NYC Housing is Rent-Stabilized
Approximately 47% of NYC's rental housing stock is rent-stabilized, meaning rent increases are strictly limited by the Rent Guidelines Board regardless of landlord costs. For these hundreds of thousands of apartments, landlords cannot raise rents to compensate for broker fees even if they wanted to.
No-Fee Apartments Already Existed
Before the FARE Act, many landlords already paid broker fees themselves or managed rentals without brokers. These "no-fee" apartments weren't systematically more expensive than apartments with tenant-paid broker fees. The FARE Act simply makes the no-fee model the standard rather than the exception.
Landlords May Skip Brokers Altogether
Faced with paying broker fees themselves, many landlords may choose to list apartments directly on rental platforms without broker representation. This could actually increase competition and reduce costs overall.
Of course, some landlords may attempt small rent increases, particularly in highly competitive neighborhoods. However, the overall data suggests renters will still come out far ahead by eliminating thousands of dollars in upfront broker fees.
How to Navigate Apartment Hunting Under the FARE Act
The new rules create a much more straightforward and transparent rental process. Here's how to apartment hunt effectively under the FARE Act:
Step 1: Check Listings Carefully
All rental listings on platforms like StreetEasy, Zillow, and others must now clearly disclose all fees. When browsing apartments, look for:
- Complete fee disclosure in the listing description
- Breakdown of one-time fees (application fees, security deposit, etc.)
- Information about recurring fees (if any)
- Whether the listing is "no-fee" (it should be, unless you're hiring your own broker)
If a listing doesn't clearly state fees, that's a red flag. Ask before scheduling a showing.
Step 2: Ask About Fees During Showings
Don't be shy about asking direct questions:
- "Are there any broker fees or other fees I would be responsible for?"
- "Can you provide a written breakdown of all costs I'll need to pay upfront?"
- "Who hired you to show this apartment—the landlord or are you representing tenants?"
Under the FARE Act, you have a right to clear answers before making any decisions.
Step 3: Get Everything in Writing
Before signing a lease, the landlord or their agent must provide you with an itemized written disclosure of all fees you must pay. This should include:
- Security deposit amount
- Application or background check fees
- Any other charges or fees
- Brief descriptions of what each fee covers
Review this carefully before signing anything. If fees appear that weren't disclosed in the listing or during showings, question them.
Step 4: Know What You Can Still Be Charged For
The FARE Act doesn't eliminate all fees—just broker fees when landlords hire the broker. You can still be charged for:
- Application fees and background checks (reasonable amounts)
- Security deposit (typically one month's rent)
- First month's rent
- Pet deposits or pet rent (if applicable)
- Key deposits or fob fees
However, all of these must be clearly disclosed upfront.
What to Do If Someone Violates the FARE Act
Unfortunately, not everyone follows the law. Some landlords or brokers may try to skirt the FARE Act through various tactics:
Common FARE Act Violations
- Requiring you to pay a broker fee when the landlord hired the broker
- Not disclosing fees in listings or before showing apartments
- Conditioning rental availability on you hiring a specific broker
- Adding undisclosed fees to the lease at the last minute
- Misrepresenting who hired the broker
How to File a Complaint
If you believe a landlord or broker is violating the FARE Act, you can file a complaint with the NYC Department of Consumer and Worker Protection (DCWP). Here's what you'll need:
- Copy of the rental listing (screenshot it immediately)
- Any communications with the broker or landlord (emails, texts, etc.)
- Copy of the lease or proposed lease
- Documentation of any fees you were asked to pay
- Contact information for the broker and/or landlord
You can file complaints online through the DCWP website, which provides instructions in multiple languages. Violations can result in civil penalties ranging from $500 to $2,000 per violation.
Red Flags to Watch For
- Broker refuses to say who hired them
- Fees aren't mentioned until you're ready to sign the lease
- Broker insists you must hire them to see the apartment
- Listing doesn't include any fee information
- Broker becomes evasive when you ask about the FARE Act
Trust your instincts. If something feels wrong, it probably is.
Impact on Different Types of Renters
The FARE Act affects different groups of renters in specific ways. Here's how the new law impacts various situations:
First-Time NYC Renters
If you're moving to NYC for the first time, the FARE Act is a game-changer. You're already facing enormous upfront costs—security deposit, first month's rent, moving expenses, and furniture. Eliminating broker fees means you can actually afford to move without maxing out credit cards or depleting your entire savings.
The savings could mean the difference between moving to NYC with a financial cushion versus arriving broke and stressed.
Students and Young Professionals
Early-career renters and students typically have limited savings and cash flow. Broker fees often meant borrowing money from family or taking on debt just to secure an apartment. The FARE Act removes this barrier, making NYC more accessible to young people trying to start their careers or complete their education.
Families Relocating
Families face even higher moving costs than individuals—larger apartments mean higher broker fees under the old system, plus the costs of moving with children. A family renting a three-bedroom apartment for $4,500/month previously faced broker fees of $6,750-$8,100. Eliminating this cost makes family-friendly apartments much more accessible.
Renters Facing Emergency Moves
Sometimes you need to move quickly due to job changes, family emergencies, or housing issues. Emergency moves are already stressful and expensive. The FARE Act means you don't have to come up with an extra $5,000-$6,000 on short notice just to secure housing.
Current NYC Residents Moving Within the City
Even if you already live in NYC, moving to a new apartment within the city previously meant paying another broker fee. For New Yorkers who move every few years (which is common), these fees added up to tens of thousands of dollars over time. The FARE Act means your money stays in your pocket rather than going to brokers you didn't hire.
The Bigger Picture: Why the FARE Act Matters
Beyond individual savings, the FARE Act represents a fundamental shift toward fairness and transparency in NYC's rental market. Council Member Chi Ossé, who championed the legislation, explains: "After too many decades under an unfair and suffocating system, New Yorkers can be free from the forced broker fee once this new law takes effect. The era of the captive tenant may finally be over."
Reducing Housing Insecurity
High upfront costs trap people in bad housing situations. When moving requires $10,000-$15,000 in cash, people stay in apartments with problem landlords, accept worse living conditions, or remain in neighborhoods they want to leave. The FARE Act increases housing mobility and reduces housing insecurity.
Leveling the Playing Field
The old broker fee system disproportionately hurt working-class New Yorkers, people of color, immigrants, and anyone without substantial savings. Wealthy renters could absorb broker fees; everyone else struggled. The FARE Act creates a more equitable system where housing access isn't determined by your ability to pay thousands upfront.
Bringing NYC in Line with the Rest of the Country
New York City was an outlier—almost every other city in America operates under the principle that whoever hires a service pays for it. The FARE Act simply brings NYC in line with standard practice nationwide.
Saving City and State Money
According to the Independent Budget Office, NYC taxpayers previously paid approximately $99 million in broker fees through emergency rental assistance programs and housing vouchers over just two fiscal years. The FARE Act means this public money can go toward actually housing people rather than enriching brokers.
Special Considerations When Apartment Hunting
While the FARE Act simplifies the rental process, there are still important factors to consider during your apartment search:
Timing Your Move
Understanding when to move in NYC remains important even without broker fees. Summer months (May-September) are still the most competitive rental season, while winter months often offer better deals and more negotiating power.
Neighborhood Research
Saving thousands on broker fees means you might have more flexibility in choosing your neighborhood. Consider using your savings to afford a slightly more expensive neighborhood with better amenities, shorter commute times, or improved quality of life.
Budget Planning
Even without broker fees, you still need substantial upfront cash. For a $3,000/month apartment, budget for:
- First month's rent: $3,000
- Security deposit: $3,000
- Application fees: $100-$200
- Moving costs: $500-$2,000+
- Utilities setup: $200-$500
- Total: $6,800-$8,700
This is still substantial but far more manageable than the previous $11,000-$13,000.
What About Lease Renewals and Existing Tenants?
The FARE Act applies to new lease agreements signed on or after June 11, 2025. If you signed your lease before that date, the old rules still apply to your current lease, but here's what you need to know:
Lease Renewals
When your current lease comes up for renewal, you won't be charged new broker fees even if you negotiated your original lease under the old system. Lease renewals typically don't involve brokers at all—you negotiate directly with your landlord.
Moving to a New Apartment
If you decide to move to a different apartment after June 11, 2025, the FARE Act fully applies to your new rental. You won't pay broker fees unless you specifically choose to hire your own tenant broker.
Existing Month-to-Month Agreements
If you're on a month-to-month tenancy that continues past June 11, 2025, the FARE Act protections apply. Your landlord cannot suddenly impose broker fees on a continuing tenancy.
The Future of NYC's Rental Market
The FARE Act is still relatively new, and its long-term effects on NYC's rental market will unfold over time. However, several trends are already emerging:
More Direct Landlord Listings
Faced with paying broker fees themselves, many landlords—especially smaller property owners—are choosing to list apartments directly on rental platforms without broker intermediaries. This increases inventory and potentially creates more competitive pricing.
Broker Business Model Evolution
Real estate brokers are adapting their business models. Some are focusing exclusively on tenant representation, where renters voluntarily hire them for specialized services. Others are negotiating new compensation structures with landlords that provide value beyond simple apartment listings.
Increased Transparency
The FARE Act's disclosure requirements are creating a more transparent rental market overall. Even fees unrelated to brokers must now be clearly disclosed upfront, helping renters make informed decisions and compare apartments accurately.
Potential for Similar Laws Statewide
The FARE Act only applies to New York City, but its success could inspire similar legislation in other New York municipalities or even statewide adoption of fair broker fee practices.
Practical Tips for Your NYC Apartment Search
Armed with knowledge about the FARE Act, here are practical tips to maximize your savings and find the right apartment:
Start Your Search Early
Without the pressure of broker fees hanging over every application, you can afford to be more selective. Start your apartment search 4-6 weeks before your desired move-in date to explore options thoroughly.
Use the Savings Strategically
The $5,000-$6,000 you save on broker fees can be redeployed strategically:
- Hire professional movers for a stress-free move
- Pay for quality furniture instead of relying on curb finds
- Build a true emergency fund for unexpected expenses
- Upgrade to a better apartment or neighborhood
- Cover the costs of setting up utilities and services
Document Everything
Save copies of all listings, communications, fee disclosures, and agreements. If any issues arise, you'll have evidence to support your position or file a complaint if necessary.
Don't Be Afraid to Walk Away
Without broker fees, you're not financially committed until you sign a lease and pay deposits. If something feels off during the process—unclear fees, pressure tactics, or red flags about the property—you can walk away without losing thousands of dollars.
Focus on What Really Matters
With broker fees out of the equation, you can focus apartment hunting on what actually matters: location, apartment quality, building condition, landlord reputation, and neighborhood fit rather than being forced to accept a suboptimal apartment because you already paid a non-refundable broker fee.
Common Questions About the FARE Act
Does the FARE Act apply to co-ops and condos?
The FARE Act applies to rental agreements. Co-ops and condos involve purchases rather than rentals and have different rules. However, if you're renting (not buying) a co-op or condo unit from an owner, the FARE Act applies.
What if I already paid a broker fee before June 11, 2025?
The law is not retroactive. If you paid a broker fee under the old system before June 11, 2025, you cannot recover that money. However, when your lease expires and you move to a new apartment, the new rules will apply.
Can landlords charge "administrative fees" instead of broker fees?
All fees must be clearly disclosed and must be for legitimate services. Landlords cannot disguise broker fees as "administrative fees" or create new fees to circumvent the law. If a fee seems suspicious or wasn't clearly disclosed, question it or file a complaint.
Do roommate situations change anything?
The FARE Act applies the same way whether you're renting alone or with roommates. If the landlord hired a broker to list the apartment, none of the tenants (roommates) should be charged broker fees.
What about sublets?
Subletting has its own specific rules under NYC sublet laws. The FARE Act primarily addresses landlord-tenant relationships rather than sublet arrangements between existing tenants and subletters.
Your Next Steps: Apartment Hunting Under the FARE Act
Whether you're a first-time NYC renter or a longtime resident looking for a new place, the FARE Act fundamentally improves your apartment hunting experience. Here's your action plan:
- Update your moving budget: Recalculate your upfront costs without broker fees to understand what you can afford
- Research neighborhoods: With more money available, consider neighborhoods previously out of reach
- Start your search: Browse rental listings on StreetEasy, Zillow, and other platforms, checking for complete fee disclosure
- Ask questions: Don't hesitate to clarify who hired the broker and what fees you're responsible for
- Document everything: Save listings, emails, texts, and all communications about fees
- Know your rights: Familiarize yourself with the FARE Act so you can recognize violations
- Plan your move: Once you secure your apartment, schedule your professional moving costs and start planning your transition
The Bottom Line: A Fairer Rental Market
The FARE Act represents one of the most significant improvements to tenant rights in New York City in recent memory. By eliminating forced broker fees, the law saves renters an average of $5,500 per move, reduces barriers to housing access, and creates a more transparent and equitable rental market.
For the hundreds of thousands of New Yorkers who move each year, this isn't just about saving money—though the financial relief is substantial. It's about fairness. It's about transparency. It's about ensuring that hardworking people can afford to live in the city they call home without being gouged by a system that never made sense in the first place.
As Council Speaker Adrienne Adams stated when the law passed: "To address the affordability crisis in our city, we must make the process of renting an apartment more transparent and affordable for working-class New Yorkers. The Council is proud to pass this historic bill to protect our city's renters, ensuring that tenants aren't on the hook for fees for services they didn't hire."
The FARE Act won't solve all of NYC's housing challenges—rents are still high, inventory is still limited, and finding a great apartment is still competitive. But it removes one of the most frustrating and unfair financial barriers that renters faced.
When you're ready to make your move, focus your energy and resources on what matters: finding the right apartment in the right neighborhood, planning a smooth transition, and building your new life in New York City. And when moving day arrives, trust experienced NYC Professional Movers to handle the logistics while you focus on settling into your new home—a home you could afford to move into without paying thousands to someone you never hired.
Key Takeaways: FARE Act at a Glance
- The FARE Act took effect June 11, 2025, requiring landlords to pay broker fees when they hire brokers
- Average renter savings: $5,500 in eliminated upfront costs
- Total upfront moving costs drop from ~$13,000 to ~$7,500 for typical NYC apartments
- You can still voluntarily hire your own tenant broker if you choose—but it's optional, not mandatory
- All rental listings must now clearly disclose all fees upfront
- Violations can be reported to NYC Department of Consumer and Worker Protection
- The law applies to new leases signed on or after June 11, 2025
- No one can require you to hire a broker as a condition of renting an apartment
- Landlords cannot disguise broker fees as other charges to circumvent the law
- NYC becomes the largest U.S. city to ban landlord-imposed broker fees on tenants
Additional Resources
For more information about the FARE Act and your rights as a NYC renter:
- NYC Department of Consumer and Worker Protection: Official FARE Act information and complaint filing
- NYC 311: General questions about tenant rights and housing issues
- StreetEasy and Zillow: Updated rental listings with clear fee disclosure
- Housing Justice for All: Tenant advocacy and resources
- NYC Tenant Rights Brochure: Available in 11 languages from DCWP
Understanding the FARE Act is just one piece of everything you need to know about moving in NYC. From securing your apartment to navigating the logistics of moving day, knowledge is power in New York City's rental market.
The era of forced broker fees is over. Welcome to a fairer, more affordable NYC rental market—one where your hard-earned money stays in your pocket, where you're moving into, not where it shouldn't have been in the first place.