Renters no longer pay the landlord's broker fee

For decades, New York City renters often had to pay a broker they never hired just to get the keys to an apartment. Fees ranged from one month’s rent to a percentage of a year’s rent, on top of the first month and a security deposit. That pushed upfront costs past $10,000 for many apartments.

The FARE Act changed that. Since June 11, 2025, a landlord’s agent can’t charge you a fee. Whoever hires the broker pays the broker. If you hire your own broker to search for you, you can still agree to pay them. Landlords must also list every fee a tenant will owe in the listing and give you a written breakdown to sign before the lease.

Council Member Chi Ossé sponsored the bill. The Council passed it 42–8 on November 13, 2024, a veto-proof margin. Mayor Eric Adams, who had criticized the bill, did not sign it, and it became law in December 2024.

The Real Estate Board of New York sued to block the law, but it took effect on schedule. The district court dismissed the industry’s speech and state-preemption claims and denied a preliminary injunction on its remaining Contracts Clause claim. On July 13, 2026, the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of the speech claims and the denial of preliminary relief. The Contracts Clause claim remained pending, but the law stayed in effect.