What NYC Renters & Landlords Need to Know About the FARE Act (Effective June 11, 2025)

Starting June 11, 2025, a new law goes into effect that will change the way broker fees are handled in New York City rentals. Whether you're a renter preparing for your next move or a landlord listing your property, the FARE Act (Fairness in Apartment Rental Expenses Act) is something you should know about.

Here’s a quick and easy Q&A to help you understand what this law means—and how it may affect your next lease.

❓What is the FARE Act?

The FARE Act is a new NYC law that requires the party who hires the real estate broker to pay the broker's fee. That means:

• If a landlord hires a broker to list and lease a property, the landlord pays the fee.

• If a renter chooses to hire a broker to help find an apartment, the renter pays.

The law is designed to increase transparency and reduce upfront costs for renters.

❓When does the law take effect?

The FARE Act applies to all new lease agreements signed on or after June 11, 2025.

❓I’m a renter. Will I still have to pay broker fees?

Not if the broker was hired by the landlord. Under the FARE Act, you cannot be charged a broker fee in that case. However, if you choose to work with a broker (for example, to help you search or negotiate), you will still be responsible for that fee—but only if you hired the broker directly.

❓I’m a landlord. Can I still use a broker?

Yes, and many landlords will continue to do so. But under the new law, you’ll be responsible for the broker’s fee if you hire them to represent your listing.

This represents a shift from past practices, where tenants often bore the cost—even when brokers represented landlords.

❓What does this mean for broker transparency?

The law requires that all tenant-paid fees be disclosed clearly and upfront, both in listings and in lease documents. Hidden fees or mislabeled charges—such as “processing,” “administrative,” or “management” fees—will not be permitted unless fully disclosed ahead of time.

❓What if someone violates the law?

The City’s Department of Consumer and Worker Protection (DCWP) may fine brokers or landlords between $750 and $2,000 per violation. Tenants may also take legal action to recover improperly charged fees.

❓Will this cause rents to go up?

Possibly. Some landlords may choose to offset the new cost of broker fees by slightly increasing rents. However, rent pricing is driven by many factors, and we have yet to see clear data showing dramatic rent spikes directly tied to the FARE Act.

✅ Key Takeaways

• The FARE Act goes into effect June 11, 2025.

• The party who hires the broker must pay the fee.

• Renters can still hire brokers—but will only pay fees if they initiate the relationship.

• All fees must be disclosed upfront in listings and lease agreements.

If you’re preparing to rent, list, or lease in New York City, now’s the time to understand how this shift might impact your move. We’re happy to guide you through it.

📩 Have questions about the FARE Act or the current rental market? Contact us here or email us anytime.