The FARE Act: What NYC Renters Need to Know About Broker Fees in 2025

Anthony Johnson
Jul 3
2 min read

If you’ve rented in New York City, you’ve likely experienced the frustration of paying a broker fee even when you didn’t hire the broker. These fees, often 15 percent of the annual rent, can add thousands of dollars upfront.

That’s why a proposed bill called the FARE Act is gaining attention. It could bring major change to how broker fees are handled in NYC. Here’s what you need to know.

What Is the FARE Act?

The Fairness in Apartment Rental Expenses (FARE) Act was introduced in the New York State Legislature to improve transparency and fairness in rental transactions.

Under current rules, renters often pay the broker fee, even when the broker is working for the landlord. The FARE Act would stop this.

If passed, the FARE Act would:

Prohibit landlords from passing their own broker fees to renters
Still allow tenants to pay a broker fee if they hire an agent to help them

In short, whoever hires the broker pays the fee.

Why This Matters

In NYC, broker fees can be steep, sometimes costing renters $4,000 to $7,000 upfront. When renters have no say in hiring the broker, this can feel unfair. The FARE Act would give renters more control and reduce unexpected costs.

Is the FARE Act a Law Yet?

Not yet. The bill has been introduced in both the Senate and Assembly but has not passed. Until it becomes law, most landlords and brokers can still charge these fees to renters.

What Would Change if It Passes?

If signed into law:

Landlords must pay brokers they hire
Renters only pay a fee if they hire their own agent

This could shift how rentals are marketed and may make some listings more affordable upfront.

What You Can Do Now

Even without new laws, you can take steps to avoid surprises:

Ask upfront who the agent represents
Budget for fees and move-in costs early
Work with a transparent agent who explains the process clearly

Need Help Navigating Broker Fees?

I’m always upfront about fees, representation, and what you can expect. If you’re unsure about your options or want help finding a rental that works for your budget, let’s connect. I’ll walk you through the process from start to finish.