NYC Landlords Now Required to Pay Broker Fees: What Renters Need to Know About the New FARE Act

Introduction

Starting June 11, 2025, NYC landlords must now pay broker fees instead of renters, thanks to the Fairness in Apartment Rental Expenses (FARE) Act. For tenants, this means savings of 12–15% of annual rent—potentially thousands in reduced moving costs.

What the FARE Act Changes

• Landlords pay: When hiring agents, landlords cover the broker fee.
• Tenants save: No upfront broker fee—easier access to apartments.

How It Became Law

• City Council passed it: 42–8 vote.
• Mayor didn’t sign or veto: Law takes effect without his signature.
• Current legal challenge:
  • REBNY, brokerages, and co-op boards sued, citing possible contract and speech violations. They also warn of higher rents and limited listings apartmentcoverage.com+1youtube.com+1.

Support and Enforcement

• City defends the law: It helps reduce upfront costs for renters—two-thirds of New Yorkers rent apartmentcoverage.com.
• Penalties: Up to $1,000 fine for first violations, $2,000 for repeat offenses within two years. The Department of Consumer and Worker Protection will handle enforcement and public outreach apartmentcoverage.com.

What This Means for Renters

• Lower upfront costs: No broker fees makes apartment hunting easier.
• Watch the legal case: Lawsuits continue; court decisions may affect enforcement timing.
• Stay informed: Check official NYC and tenant-advocate sources for guidance on rights and landlord rules.

Conclusion

The FARE Act marks a major shift in NYC’s rental market. By removing broker fee burdens from tenants, it aims to make renting fairer. With enforcement set to begin mid‑June, both renters and landlords should prepare now.

🏛️ Official FARE Act & Government Resources

• NYC Department of Consumer and Worker Protection (DCWP) official FAQ and enforcement details — comprehensive guide, complaint submission info, and effective date (June 11, 2025) spectrumlocalnews.com+15nyc.gov+15brooklyneagle.com+15
• DCWP press release announcing enforcement & outlining tenant protections, compliance measures, and new listing requirements nypost.com+2citylimits.org+2nypost.com+2

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⚖️ Legal Opposition & Industry Insight

• REBNY “What You Need to Know About the FARE Act” — offers a broker-focused perspective: who pays, disclosure rules, listing authority, enforcement potential, and fines wsj.com+15rebny.com+15rebny.com+15

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📰 Additional Reference & Context

• CBS News summary — concise overview of how the law works, including Council vote, mayoral stance, and enforcement setup finance.yahoo.com