Big Changes Ahead: What NYC Renters & Landlords Should Know About the New Broker Fee Law

Photo by Ricky Singh on Unsplash

If you’ve ever rented an apartment in New York City, you know the sting of writing a large check for a broker’s fee — sometimes thousands of dollars — just to move into your new home. It’s long been a standard practice in NYC for renters to pay these fees, even when the broker was technically representing the landlord. But all that is about to change.

On June 11, 2025, a new law known as the Fairness in Apartment Rental Expenses (FARE) Act is scheduled to take effect, marking a major shift in how broker fees are handled in residential rentals across the city. The law was passed by the New York City Council in 2024 and is designed to make renting in the city a little more affordable — and a lot more transparent.

Under the FARE Act, landlords will now be required to pay the broker’s fee when the broker is working on their behalf to market or lease an apartment. Renters, on the other hand, will only be responsible for a broker’s fee if they personally hire a broker to help them search for and secure a home. It’s a change that puts financial responsibility back where the relationship lies — with the party that hired the broker.

This is welcome news for many New Yorkers, especially those who’ve struggled to come up with several months’ worth of rent just to move in. Broker fees in NYC have traditionally run as high as 15% of the annual rent, a hefty cost in a city where rent itself is often sky-high. The FARE Act promises to ease that burden by shifting those costs away from tenants in most cases.

But not everyone is on board. The law is currently facing legal challenges from industry groups, including the Real Estate Board of New York (REBNY), which filed a lawsuit in late 2024. They argue that the law conflicts with existing state regulations and infringes on the rights of property owners. Despite the pending litigation, the FARE Act is still on track to be enforced beginning June 11, 2025 — though that could change depending on the outcome of the court case.

So what happens if a landlord or agent tries to charge a tenant a fee in violation of the new rules? There are consequences. The Department of Consumer and Worker Protection (DCWP) will be overseeing enforcement, and landlords or brokers found to be in violation could face fines ranging from $500 to $2,000 per incident. In addition, brokers risk disciplinary action from the New York State Department of State, which oversees licensing.

For renters, the takeaway is clear: starting next summer, you shouldn't be paying a broker fee unless you’ve hired the broker yourself. That means it’s more important than ever to understand who the broker is working for. If they’re representing the landlord, the fee is on the landlord — not you.

For landlords, this means budgeting will need to shift. Broker fees may now become a standard part of the cost of doing business, similar to marketing expenses or maintenance. It’s also a good time for landlords to review their relationships with brokers and ensure they’re working with professionals who stay up to date with local laws.

At The Big City Team, we’re preparing our clients — both renters and landlords — for this transition. We’re committed to full transparency, ethical service, and staying ahead of the curve when it comes to legal compliance. We’ll continue to monitor the court proceedings closely and will keep our clients informed of any changes that could impact their leases or listings.

Navigating NYC’s rental market has never been simple, but this law is a big step toward leveling the playing field. If you’re unsure how these changes affect your upcoming move or rental strategy, reach out to us. Whether you’re renting your first NYC apartment or listing your next investment property, we’re here to guide you through it with clarity and care.

Need help navigating the NYC rental market?

Contact The Big City Team at Berkshire Hathaway HomeServices Fillmore Real Estate.

Colin O'Leary
Founder & Team Leader
📞 646-300-2012
📧 [email protected]
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