A new rental law is going into effect on Wednesday—here's what to know
New York renters, rejoice—or at least take a deep breath. Starting Wednesday, June 11, the long-dreaded broker fee may no longer be your financial burden.
That's when the FARE Act, short for Fairness in Apartment Rental Expenses, goes into effect, flipping the script on who pays the often astronomical broker fees in New York City's rental market. The rule is simple: If a landlord hires a broker, the landlord pays the broker. If you hire a broker, you pay. That's it. No more shelling out $5,000 (or more) to someone you never hired just to snag a 500-square-foot walk-up in Alphabet City.
Of course, this is New York, so things are complicated. The Real Estate Board of New York is still fighting the law in court, arguing it violates free speech and contract rights. But unless a judge intervenes at the eleventh hour, the FARE Act is happening, and the city's Department of Consumer and Worker Protection is locked and loaded with fines. Brokers who break the rules could be hit with penalties starting at $750 and going up to $2,000.
Renters, meanwhile, should see some relief. StreetEasy estimates that average upfront costs could drop by nearly 42%, from around $13,000 to $7,500. That could mean more people can move—and move more often.
But don't break out the Champagne just yet. Landlords are already adjusting. According to Curbed, some are raising rents, like the Clinton Hill owner who upped a one-bedroom from $3,200 to $3,600 on June 1. Others are cutting brokers out entirely and relying on word-of-mouth to fill units. A few seem ready to do the unthinkable: Talk to prospective tenants themselves.
Still, experts say the doom-and-gloom predictions may be overblown. Many property managers already offer no-fee rentals and are used to absorbing those costs. And contrary to broker panic, nearly 57% of no-fee listings this year were still represented by agents, according to StreetEasy data.
Bottom line: This law could inject some sanity into the city's rental market. Transparent pricing, lower barriers and fewer surprise fees won't create utopia. Still, it is very New York to need legislation just to avoid paying someone for doing something you never asked them to do in the first place.
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09-06-2025
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A new rental law is going into effect on Wednesday—here's what to know
New York renters, rejoice—or at least take a deep breath. Starting Wednesday, June 11, the long-dreaded broker fee may no longer be your financial burden. That's when the FARE Act, short for Fairness in Apartment Rental Expenses, goes into effect, flipping the script on who pays the often astronomical broker fees in New York City's rental market. The rule is simple: If a landlord hires a broker, the landlord pays the broker. If you hire a broker, you pay. That's it. No more shelling out $5,000 (or more) to someone you never hired just to snag a 500-square-foot walk-up in Alphabet City. Of course, this is New York, so things are complicated. The Real Estate Board of New York is still fighting the law in court, arguing it violates free speech and contract rights. But unless a judge intervenes at the eleventh hour, the FARE Act is happening, and the city's Department of Consumer and Worker Protection is locked and loaded with fines. Brokers who break the rules could be hit with penalties starting at $750 and going up to $2,000. Renters, meanwhile, should see some relief. StreetEasy estimates that average upfront costs could drop by nearly 42%, from around $13,000 to $7,500. That could mean more people can move—and move more often. But don't break out the Champagne just yet. Landlords are already adjusting. According to Curbed, some are raising rents, like the Clinton Hill owner who upped a one-bedroom from $3,200 to $3,600 on June 1. Others are cutting brokers out entirely and relying on word-of-mouth to fill units. A few seem ready to do the unthinkable: Talk to prospective tenants themselves. Still, experts say the doom-and-gloom predictions may be overblown. Many property managers already offer no-fee rentals and are used to absorbing those costs. And contrary to broker panic, nearly 57% of no-fee listings this year were still represented by agents, according to StreetEasy data. Bottom line: This law could inject some sanity into the city's rental market. Transparent pricing, lower barriers and fewer surprise fees won't create utopia. Still, it is very New York to need legislation just to avoid paying someone for doing something you never asked them to do in the first place.
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