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

For decades, New York renters routinely paid a broker's fee — often 12–15% of the annual rent — just to move into an apartment, even when the broker worked for the landlord. The FARE Act changed that. Here's the plain-English version. This is educational information, not legal advice.

What the FARE Act does

The Fairness in Apartment Rental Expenses (FARE) Act took effect in June 2025. Its core rule: the party who hires the broker pays the broker. If a landlord lists an apartment and engages a broker to rent it, the landlord — not you — is responsible for that broker's fee.

What it means for you as a renter

• You generally won't be charged a broker fee on an apartment the landlord listed with their own broker.
• Listings must disclose any fees a tenant would owe up front.
• If you hire your own broker to find you a place, you can still agree to pay that broker — that's a fee you chose.

What still costs money

The FARE Act targets broker fees, not everything. You may still pay first month's rent, a security deposit (capped at one month), and an application fee (capped at $20, and waivable — see our fee-waiver guide).

If you're charged a broker fee anyway

Ask who hired the broker. If the landlord did, the fee generally isn't yours to pay. You can file a complaint with the NYC Department of Consumer and Worker Protection.

Official sources

• NYC Department of Consumer and Worker Protection