Broker fees are still legal in New York City, but as of June 11, 2025, you almost certainly do not owe one. Under the Fairness in Apartment Rental Expenses (FARE) Act, the party who hires the broker pays the broker.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act For most NYC rentals, that is the landlord. The only time a tenant owes a broker fee is when the tenant independently hires their own broker to help with the search.
Before this law, NYC was one of the only U.S. rental markets where tenants routinely paid a commission for a broker the landlord had hired. Those fees typically ran 12% to 15% of the annual rent, and some reached $20,000.2New York City Council. What to Know About New Yorks Latest Attempt to End Forced Broker Fees for Renters That cost no longer falls on the tenant.
Who Pays the Broker Now
The rule is straightforward. A landlord’s agent cannot charge a fee to a prospective tenant. A listing agent who advertises the apartment with the landlord’s permission cannot charge a fee to a prospective tenant.3New York City Council. Int 0360-2024 – FARE Act No one can condition the rental of an apartment on a tenant hiring or paying any broker, including a dual agent who represents both sides.
To keep landlords from claiming they never actually “hired” the broker listing their apartment, the law creates a rebuttable presumption: any agent who publishes a listing for a rental is presumed to have the landlord’s permission, which makes that agent a landlord’s agent under the statute.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act The landlord is liable if that agent charges a tenant a fee. A vague handshake with the broker will not shift responsibility back to the tenant. The landlord carries the burden of rebutting the presumption if they want to argue otherwise.3New York City Council. Int 0360-2024 – FARE Act
The practical effect: if you found the apartment on StreetEasy or any similar platform and the broker showing it works for the listing, that broker cannot bill you.
When You Do Owe a Broker Fee
The FARE Act does not stop tenants from hiring their own broker and paying for that work. If you independently retain a licensed broker to search for apartments, negotiate lease terms, or manage your application, you owe that broker’s commission.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act The distinction is choice: this has to be an arrangement you sought out, not a condition of getting a specific apartment.
Most renters do not need their own broker. If a broker at a showing tries to get you to sign a client agreement before they will show you the unit, that is not allowed. Requiring a tenant to hire a dual agent, someone representing both the landlord and the tenant, is explicitly banned.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
If you do hire your own broker, get the terms in writing. The agreement should state the exact fee, when it becomes payable (usually at lease signing on an apartment the broker showed you), and that the broker represents you rather than the landlord.
What the Landlord Must Disclose Before You Sign
Landlords and their agents must give you an itemized written disclosure of every fee you have to pay to the landlord, or to anyone at the landlord’s direction, to rent the apartment. Each fee needs a written description. You sign that disclosure before signing the lease, and the landlord or agent must keep the signed copy for three years and give you a copy.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
Listings themselves must disclose all fees a prospective tenant would need to pay, and no listing can advertise an unlawful broker fee.3New York City Council. Int 0360-2024 – FARE Act An ad saying “one month broker fee required” is a red flag. Screenshot it.
If You Were Charged a Broker Fee Anyway
The NYC Department of Consumer and Worker Protection (DCWP) enforces the FARE Act. DCWP can impose civil penalties on violators and order restitution of any illegal fees.4NYC Department of Consumer and Worker Protection. DCWP Announces the FARE Act Is Now in Effect Penalties escalate with repeat violations:
- First violation: $750 civil penalty, or $1,000 if the landlord defaults
- Second violation: $1,800, or $2,000 on default
- Third and subsequent violations: $2,000 each5NYC Rules. 6 RCNY 6-89 Fees for Rental of Residential Property Penalty Schedule
These are per-violation fines. A landlord who charges illegal broker fees across multiple tenants faces stacking penalties on top of reimbursing each tenant.
You can file a complaint with DCWP online at nyc.gov/consumers, by calling 311, or by mailing a completed complaint form to DCWP’s Consumer Services Division at 42 Broadway, New York, NY 10004.6NYC Department of Consumer and Worker Protection. File Complaint Include receipts, contracts, listing screenshots, and any texts or emails about the fee. DCWP uses mediation to resolve complaints, and no account is required to file online.
You do not have to wait for the city. The FARE Act creates a private right of action, so you can sue in civil court to recover an illegal fee directly.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
What the Law Does Not Cover
The FARE Act applies to lease agreements signed on or after June 11, 2025. It is not retroactive, and it does not cover lease renewals. If you signed before that date or you are renewing, the FARE Act’s broker fee rules do not apply to that transaction.
The law does not cap rent. Some landlords have raised monthly rent to recoup what they now pay in broker commissions. The FARE Act regulates who pays the broker, not the rent, so nothing prohibits a landlord from pricing that cost in. Rent-stabilized units are limited by the Rent Guidelines Board’s allowable annual increases, but market-rate units have no such cap.
Application fees are separately governed by Section 238-a of New York’s Real Property Law, which caps them at $20. The FARE Act does not change that cap. Co-op and condo board fees for sublet applications are generally separate from the broker fee rules, since those are charged by the building’s board rather than a landlord’s broker.
What NYC Move-In Costs Look Like Now
Application fees are capped at $20, covering the actual cost of a background or credit check.3New York City Council. Int 0360-2024 – FARE Act Security deposits are limited to one month’s rent under New York state law.7New York State Senate. New York General Obligations Law 7-108 A landlord asking for first month, last month, and a security deposit is asking for more than the law allows.
For a typical market-rate apartment, you should expect to pay around two months’ rent upfront: first month plus one month’s security. Before the FARE Act, the same move-in could easily run three to four months’ rent once a broker fee was added.
The real estate industry has challenged the FARE Act in court, but as of mid-2026 the law is in effect and DCWP is actively enforcing it.4NYC Department of Consumer and Worker Protection. DCWP Announces the FARE Act Is Now in Effect If a landlord or listing broker asks you to pay their commission, you have grounds to refuse, to demand your money back, and to file.