What the FARE Act Changes for Renters and Landlords
New York City's new Fairness in Apartment Rental Expenses (FARE) Act changes who pays broker fees. Learn how this law affects both renters and landlords starting June 2025.
Daniel McDevittApril 25, 20251 min read
The FARE Act examines New York City's new Fairness in Apartment Rental Expenses law and its implications for the rental market. In 2024, the average total cost to secure a lease reached $12,951, representing a significant increase from prior years. This burden has prompted legislative action.
Main Changes
Under the FARE Act, whichever party hires a broker must cover the associated fees. Previously, nearly 47% of NYC rentals shifted these costs to tenants. The law also mandates transparent disclosure of all owner-related fees in listings and lease agreements.
Implementation Timeline
The City Council passed the measure on November 13, 2024, with 42 of 51 members voting favorably. The law takes effect June 11, 2025.
Market Impact
Major platforms like StreetEasy anticipate genuine tenant benefits, while skeptics worry landlords might offset costs through rent increases. The actual affordability impact remains uncertain and will become clearer as the law takes effect.
What This Means for You
For renters: You'll no longer be required to pay broker fees when a landlord hires the broker. All fees must be transparently disclosed upfront.
For landlords: You'll need to factor broker fees into your rental strategy and ensure full fee disclosure in all listings and lease agreements.