The FARE Act: who pays the broker fee in NYC now

For as long as anyone can remember, renting an apartment in New York City came with a brutal, uniquely local surprise: the broker fee. You would find a listing online, meet an agent for a fifteen-minute walk-through, decide you wanted the place, and then learn that moving in required paying that same agent a "fee" equal to 12% to 15% of a full year's rent — often thousands of dollars — for a broker you never asked for and never hired. On a $3,000 apartment, that was a $4,500 to $5,400 charge on top of first month and a deposit. That is what the FARE Act ended. This guide explains exactly what changed, what you still owe, and what to do if a landlord or broker tries to charge you anyway.

The short version: the party who hires the broker is now the party who pays the broker. If a landlord lists an apartment through an agent, the landlord pays that agent's fee — not you. Knowing this rule cold is the difference between keeping thousands of dollars and handing them over out of confusion. If you want to walk into your search already prepared, CertRent gives renters a free verified renter profile you can share with any landlord.

What the FARE Act actually is

FARE stands for the Fairness in Apartment Rental Expenses Act. It is a New York City law — passed by the City Council in late 2024 and enforced by the NYC Department of Consumer and Worker Protection (DCWP) — that took effect in June 2025. It does not cap or set broker commissions. Brokers can still charge whatever the market allows. What the law changes is a single, decisive question: who is on the hook to pay.

Under the old system, landlords could hire a broker to list, show, and rent out their apartment, and then require the incoming tenant to pay that broker's entire commission. The tenant paid for a service performed for the landlord. The FARE Act closes that loophole with a simple principle borrowed from basic fairness — you pay the professional you chose to hire, and nobody else's bill lands on you by default.

What it means for renters

The headline benefit is direct: on a landlord-listed apartment, you owe $0 in broker fees. If the landlord (or their management company) engaged the broker to market the unit, that broker's fee is the landlord's responsibility. It cannot be renamed, repackaged, or quietly shifted onto you at lease signing.

You still have the right to hire your own broker if you want one. If you tell an agent, "please search the whole city and find me a two-bedroom under $3,500," and you sign an agreement to pay them, that is a service you hired and you pay for it. That was always legal and still is. What a landlord's agent can no longer do is perform work for the landlord and send the invoice to you.

There is one gray area worth naming honestly: a broker cannot get around the law by having you "hire" them at the last minute for an apartment they were already listing for the landlord. The intent of the law is that the person who engaged the broker's services pays. If a broker is clearly working for the landlord's side, dressing it up as your hire is exactly the kind of thing DCWP looks at.

The required fee disclosure in listings

The FARE Act does more than reassign the fee — it forces transparency before you ever fall in love with an apartment. Every rental listing and advertisement must now disclose, in writing, any fee the tenant will be required to pay, and the landlord must give prospective tenants a written itemized list of those fees before a lease is signed, with the tenant acknowledging it.

In plain terms: the days of "surprise, there's a broker fee" at the signing table are over. If a fee is not disclosed up front in the ad, a landlord or broker cannot spring it on you later. When you browse listings, look for that fee disclosure. A clean listing on a landlord-hired broker's page should show no tenant broker fee at all.

Who pays what: the 2026 breakdown

Here is what a typical NYC move-in looks like now for a landlord-listed apartment. Keep this table handy when you compare the real cost of two apartments.

What you still pay

The FARE Act removes the landlord's broker fee, but a legitimate move-in still costs money. Here is what is still on you — and the caps that protect you on each one.

• First month's rent. Due at signing, as always. This is not a fee; it is rent.
• Security deposit — capped at one month. Statewide law limits your security deposit to one month's rent. A landlord cannot demand "first, last, and security" as three separate months of deposit. The deposit portion is one month, full stop, and it must be returned within 14 days of move-out with an itemized statement of any deductions.
• Application fee — capped at $20 and waivable. Under New York Real Property Law 238-a, the total tenant-screening fee is capped at $20 for the background and credit check combined, and the landlord must waive it entirely if you provide your own background check or credit report from the past 30 days. This is where a carried, verified profile pays for itself — read how the NYC application-fee waiver works and skip the $20 at every apartment you apply to.

Notice the pattern: the FARE Act, the deposit cap, and the $20 fee cap all point the same way. New York has spent the last few years systematically pulling made-up charges off renters. For the full picture of what a landlord can and cannot charge, see our guide to NYC renter rights.

What to do if you're charged a broker fee anyway

Some landlords and brokers will test the law, especially in a hot market. If a landlord's agent tries to charge you a broker fee, or a listing hides a mandatory fee that was never disclosed, you have a clear path.

1. Save everything. Screenshot the listing, the advertised terms, and any texts or emails where a fee is mentioned. Keep the lease and any receipts. Dates and dollar amounts matter.
2. Push back in writing. A short, polite message often ends it: "Under the FARE Act, the fee for a broker the landlord hired is the landlord's responsibility, so I won't be paying a broker fee for this listing." Many agents back down the moment they see you know the rule.
3. File a DCWP complaint. The NYC Department of Consumer and Worker Protection enforces the FARE Act. You can file a consumer complaint online or by calling 311. Violations can carry penalties against the landlord or broker, and your documentation is what makes the case.
4. Don't pay under pressure. Do not let "someone else will take it if you don't pay today" rush you into an illegal charge. A fee that the law says you don't owe does not become legal because the market is tight.

The landlord's perspective

It would be dishonest to pretend the FARE Act has no cost. From the landlord's side, the broker fee did not disappear — it moved onto their books. Owners who use brokers to fill units now pay those commissions themselves, and some have responded by folding a portion of that cost into the monthly rent, listing fewer apartments through brokers, or renting directly.

That last shift is the interesting one for tenants: more landlords are handling their own listings and screening to avoid broker costs, which means the renter who shows up organized and verified is more attractive than ever. A landlord renting directly wants a fast, low-hassle, trustworthy tenant. If you are a landlord reading this, our tools for landlords let you list, screen, and e-sign a compliant NY lease without paying a broker at all.

Legal challenges and current status

The FARE Act did not arrive quietly. Real-estate industry groups, led by brokerage interests, sued to block it, arguing it interfered with contracts and free speech and would raise rents. Courts allowed the law to take effect in June 2025, and it has been operating since. As with many high-profile city laws, litigation and appeals can continue in the background even while the law is enforced.

What that means practically: as of mid-2026, the FARE Act is the law and is being enforced by DCWP. Because legal challenges to laws like this can evolve, it is always worth confirming the current status through the official sources below before a major decision — but the rule you should expect at the leasing table today is simple. On a landlord-listed apartment, you don't pay the broker fee.

Frequently asked questions

Do I have to pay a broker fee to rent an apartment in NYC now?

Not for the landlord's broker. Since the FARE Act took effect in June 2025, whoever hires the broker pays the broker. If the landlord or management company listed the unit through an agent, that agent's fee is the landlord's responsibility. You only owe a broker fee if you personally hired a broker and agreed in writing to pay them.

What if a listing still shows a broker fee?

Some listings advertise a fee for a broker the renter would hire, which is legal. But if the fee is for the landlord's agent — the person marketing the apartment for the owner — charging you is not allowed. The listing must also disclose any tenant fee up front. If a mandatory fee appears at signing that was never disclosed, that's a violation you can report to DCWP.

How much should I expect to pay to move in?

On a landlord-listed apartment: first month's rent, a security deposit of no more than one month, and up to a $20 application fee (waived if you bring your own recent report). No landlord's-broker fee. Some landlords also ask for last month's rent, which is negotiable and not required by law.

Can a landlord just raise the rent to cover the broker fee they now pay?

A landlord can set the rent they want on a market-rate unit, subject to Good Cause Eviction limits where they apply, so some cost may show up in rent over time. But a one-time broker commission spread into monthly rent is very different from a lump-sum fee due at signing — and it must be shown as rent, not a hidden fee. You still keep the disclosure and deposit protections.

Who do I complain to if I'm charged illegally?

The NYC Department of Consumer and Worker Protection (DCWP) enforces the FARE Act. File online or call 311, and bring your screenshots, the listing, texts, and the lease. Keep everything with dates and dollar amounts.

Does the FARE Act apply outside New York City?

No. The FARE Act is a New York City law. Tenants elsewhere in New York State have other protections — like the statewide one-month deposit cap and the $20 application-fee cap — but the broker-fee rule is specific to NYC.

Official sources

• NYC Department of Consumer and Worker Protection (DCWP) — enforces the FARE Act and takes broker-fee complaints.
• NYC 311 — the fastest way to file a consumer or housing complaint.
• New York State Attorney General — resources on tenant rights, deposits, and application fees.
• NYS Homes and Community Renewal (HCR) — statewide rent, deposit, and Good Cause Eviction guidance.
• NYC Department of Housing Preservation and Development (HPD) — housing conditions and tenant resources.

This guide is educational information, not legal advice. Facts current as of July 2026; laws change — verify with the official sources above.