What NYC Renters Need to Know About the New FARE Act (Effective Today)

William Adams
Jun 12
3 min read

Welcome to a new chapter in New York City renting. As of today, the long-anticipated FARE Act has officially taken effect, and it brings a major shift in how rental broker fees work—especially who pays them. As licensed real estate professionals, we've just received official guidance from our state broker, and here's what you, as a renter, need to know to navigate this new law with confidence.

1. You No Longer Pay a Landlord's Broker Fee

Let’s start with the big headline:

If a broker represents the landlord, they cannot charge you a commission.

That’s right. Under the FARE Act, brokers who work on behalf of landlords are no longer allowed to pass their fees onto tenants. This means you won’t have to pay a fee unless you’ve hired a broker yourself to help you find an apartment. This is a big win for renters, especially in a city where broker fees often cost upwards of 15% of annual rent.

What This Means for You:

If you’re in touch with an agent showing you an apartment, ask who they represent.
If they represent the landlord, you cannot be charged a broker fee.
If they represent you, a tenant, they can charge a fee—but only if you’ve agreed to it in writing.

2. Know Who the Broker Works For (And How They Get Paid)

The FARE Act doesn’t eliminate broker compensation altogether. It just clarifies who pays whom based on representation:

✅ You can pay a broker who works for you, the tenant.
✅ A landlord can pay their own broker (and they usually will).
✅ A landlord can even pay a broker who’s working for you, the tenant.

Why This Matters:

If you're hiring a broker to help you search, tour, and apply for apartments, you’ll need to:

Sign a NYS Agency Disclosure Form that confirms your broker is working for you.
Review and sign a Compensation Agreement stating any agreed-upon fee.

If you're not hiring your own agent, you should be cautious of anyone asking you to pay a fee. You have the right to ask for documentation showing who the agent represents.

3. Full Fee Transparency is Now the Law

Another win for renters: no more surprise charges.

All rental listings are now legally required to:

List all fees the tenant will be responsible for.
Present a written list of fees (e.g., move-in, lost keys, pet fees, etc.) before you sign the lease.
Have the tenant sign off on that list, which the landlord or agent must keep on file for three years.

Pro Tip:

Ask for this list early in the process, not just at lease signing. It will help you budget for potential add-ons—such as pet rent, move-in fees, or even charges for replacing a lost key.

🔍 From the Agent's Perspective:

Here's the honest truth: agents are adjusting just like you are.

Many agents are now re-negotiating their agreements with landlords, since they can no longer rely on tenant-paid commissions in most cases. Expect better clarity on who pays what, and expect more agents to seek direct arrangements with landlords.

For tenants, this shift creates a more level playing field—but also a need to understand agency relationships. If you're working with a broker, just be clear about the representation and compensation terms from the beginning.

✅ Final Tips for NYC Renters:

Ask who the broker represents before viewing an apartment.
Don’t agree to pay fees without signed documentation.
Request a full breakdown of all fees in writing before you commit.
Use your leverage—the law is now on your side.

Renting in New York City just became a bit more transparent. If you’re navigating this for the first time—or the first time in a while—don’t hesitate to ask your broker questions. A good agent will respect your rights, explain your options, and make sure you’re not hit with hidden fees.

Have questions about working with a broker under the new FARE Act? Reach out—we're here to help you rent smarter.