NYC's FARE Act: Your Questions Answered

NYC's FARE Act Explained

What is the FARE Act and why should I care?

The FARE Act is a NYC law that took effect June 11, 2025. It stops landlords from making you pay broker fees when you rent an apartment.

Before this law, moving in NYC meant draining your savings just to get in the door. You'd pay 12-15% of your annual rent as a broker fee upfront. That's as much as $3,000-$6,000 on top of first month's rent and security deposit.

Now? The landlord pays their own broker fees unless you specifically hired the broker yourself.

How much money will this actually save me?

The savings are real. Here's what you used to pay in broker fees:

• $3,000/month apartment: $5,400-$6,750 in broker fees
• $4,000/month apartment: $7,200-$9,000 in broker fees
• $5,000/month apartment: $9,000-$11,250 in broker fees

These were upfront costs, making your total move-in expenses $10,000-$15,000. Not anymore.

Wait, won't landlords just raise rent to make up for it?

Some are trying, but it's not that simple. Nearly half of NYC apartments are rent-stabilized, meaning landlords legally cannot pass broker fees into rent increases.

Even in market-rate apartments where rent might go up slightly, you still win. A $200/month rent increase costs $2,400 annually, way less than the $6,000+ broker fee you'd pay upfront.

Your wallet feels the difference immediately.

How do I know if a listing follows the new law?

Look for clear language like "no broker fee" or "landlord pays broker fee." Legitimate landlords now advertise this as a selling point.

All fees must be disclosed upfront in listings. If you see vague language about "additional fees" or "costs to be determined," that's a red flag.

Direct landlord listings from property management companies are usually your safest bet.

What if I want to hire my own broker?

You can still do that, but you'll pay their fee like before. This might make sense if you want specialized help finding luxury apartments or navigating specific neighborhoods.

Just make sure it's crystal clear that you hired them, not the landlord. Get this in writing.

What sketchy workarounds should I watch out for?

Some landlords are trying to get around the law with creative fees. Watch for "application fees" over $20 that seem suspiciously high.

"Mandatory move-in services" that cost hundreds for basic tasks are another red flag. Same with mysterious "administrative fees" not mentioned in the original listing.

If something feels off, it probably is.

What should I do if someone tries to charge me illegal fees?

Don’t let anyone intimidate you into paying illegal fees.

Screenshot everything, trust your gut, and know you’re not alone. The more renters stand up, the stronger this law becomes for everyone.

Report violations to NYC's Department of Consumer Protection at nyc.gov/dcp. They're actually enforcing this law with fines starting at $750.

Find a different apartment from landlords who follow the rules. There are plenty now.

How has this changed apartment hunting?

Start with property management company websites. Many handle their own leasing now to avoid broker costs entirely.

Use platforms that connect you directly with landlords rather than broker-heavy sites where fee structures get murky.

Always ask about total move-in costs before scheduling tours. Compliant landlords will give you clear numbers upfront.

Should I avoid all brokers now?

Not necessarily. Some brokers are adapting by working directly for landlords (who pay their fees) or offering services where you hire them directly.

The key is understanding who's paying before you start working with anyone. If it's not clear, ask.

When will I see the full benefits of this law?

You're seeing them now. Every apartment search starting June 11, 2025 should be broker-fee-free unless you hired the broker.

Over the next 6-12 months, more landlords will build in-house leasing teams, which should mean better service and more available apartments.

The law gets stronger as enforcement sets examples and compliant landlords gain advantages over rule-breakers.

What's the best way to apartment hunt now?

Focus on platforms that verify FARE Act compliance rather than sites where the same apartments appear with different fee arrangements. They're most likely to have streamlined, fee-free processes.

Get all fee disclosures in writing before viewing apartments. This protects you if disputes come up later.

How do I report violations?

Screenshot or save any communication about illegal fees. Don't pay anything that seems suspicious.

File a complaint with NYC's Department of Consumer Protection online at nyc.gov/dcp. They're taking these seriously.

The more people report violations, the stronger enforcement becomes for everyone.

Why does this matter beyond saving money?

Broker fees kept renters stuck in apartments that didn’t fit their lives, delaying job changes, relationships, or simply finding a place that finally felt like home.

The FARE Act isn’t just about saving money. It’s about giving renters back control, flexibility, and dignity in one of the country’s most expensive housing markets.

Now you have more freedom to find places that actually fit your life instead of just what you could afford to move into.

Since the average NYC renter moves every 2-3 years, these savings add up fast over time.

What's your best advice for apartment hunting post-FARE Act?

Be direct about fees from day one. Ask "What are my total move-in costs?"

Work with platforms that embrace transparency rather than those trying to work around the law.

Remember: you have more power now. Use it to find places you'll actually love living in.