In New York City, the landlord pays the broker’s fee whenever the landlord hired the broker, a rule that took effect June 11, 2025 under the Fairness in Apartment Rental Expenses (FARE) Act. Everywhere else in New York State, the old custom holds and the tenant typically pays the broker’s commission at lease signing. So the honest answer to who pays realtor fees for NY rentals depends almost entirely on one thing: whether the apartment is inside the five boroughs or outside them.
Inside New York City: The Landlord Pays Their Own Broker
Under the FARE Act (NYC Local Law 119 of 2024), a landlord or property management company that hires a broker to list and fill a unit must pay that broker’s commission. The rule covers listing agents and any agent acting on the landlord’s behalf.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
The law also shuts down the usual workarounds. A landlord cannot require a tenant to hire a dual agent as a condition of renting, and no one in the transaction can condition apartment availability on the tenant hiring and paying a broker, even if that broker frames it as a prerequisite to a viewing.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
The FARE Act was challenged in federal court. On June 10, 2025, U.S. District Court Judge Ronnie Abrams denied an emergency injunction, and the law took effect the next day. An appeal is pending before the Second Circuit, but the law is enforceable now, and any attempt to pass a landlord-hired broker’s fee to an NYC tenant is a current violation.
The One Case Where an NYC Tenant Still Pays
The FARE Act does not stop you from choosing to hire your own broker. If you independently engage a tenant’s agent to search for apartments, negotiate lease terms, or guide you through the market, you pay that broker directly.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
The operative word is “choosing.” A tenant’s broker can advertise services, but cannot gate access to specific units on being hired. If a broker tells you the only way to see a particular apartment is to sign a representation agreement and pay a fee, that is the exact behavior the FARE Act prohibits. Most renters who search on their own through listing platforms or by contacting landlords directly should pay no broker fee at all.
Outside New York City: Tenants Still Typically Pay
The FARE Act is a New York City law. It does not reach Westchester, Long Island, the Hudson Valley, or any other part of the state. In those markets, the longstanding custom continues: the tenant pays the broker’s commission unless the listing says otherwise.
A standard commission outside NYC runs from one month’s rent up to 15% of the total annual rent. On an apartment renting for $3,000 a month, 15% comes to $5,400 at lease signing, on top of first month’s rent and the security deposit. Landlords in slower markets or during winter sometimes cover the fee to attract tenants, but that is a negotiating point, not a legal requirement.
How the Commission Is Calculated
Whoever pays, the commission itself is sized the same way: one month’s rent, or 15% of the annual rent, whichever the broker charges. On a $4,000-per-month apartment, 15% of annual rent is $7,200; one month’s rent is $4,000. Brokers in competitive NYC neighborhoods have historically gravitated to the 15% figure, which is part of why the shift to landlord-paid fees has been felt sharply by owners there.
How to Avoid or Reduce the Fee
In NYC, the straightforward route is to search listings yourself and deal with landlords or their agents directly. Because any broker the landlord hired must now be paid by the landlord, you should not owe a fee in those transactions. The “no-fee” label that used to signal a landlord-paid listing is largely redundant for landlord-hired brokers in post-FARE NYC, since the law already prohibits charging you.
Outside NYC, “no-fee” still means what it always did: the landlord has agreed to pay the commission. Those listings remain worth hunting for. Winter months and higher-vacancy periods give you more room to ask a landlord to absorb the fee. If a listing doesn’t say “no fee,” assume you are paying and budget for it.
Disclosures You Should Receive
New York Real Property Law Section 443 requires any licensed agent to provide a disclosure form at the first substantive contact in a rental transaction. The landlord’s agent gives the tenant a New York State Disclosure Form for Landlord and Tenant stating whether the agent represents the landlord, the tenant, or both as a dual agent. You sign an acknowledgment, and the agent keeps a copy for at least three years.2New York State Senate. New York Real Property Law 443 – Disclosure Regarding Real Estate Agency Relationship
Brokers must also give you a written document stating the exact fee and who is responsible for paying it before you sign anything binding.3Legal Information Institute. New York Code 19 NYCRR 175.7 In NYC, that document is useful evidence: if it names you as responsible for a landlord-hired agent’s fee, it points to a FARE Act violation. The FARE Act separately requires landlords to disclose any fees you will owe before you sign a rental agreement, and bars advertisements from listing an unlawful broker fee.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
If You’re Charged a Fee You Don’t Owe
In NYC, the Department of Consumer and Worker Protection (DCWP) enforces the FARE Act. If DCWP finds a violation, it issues a summons and the case goes to the NYC Office of Administrative Trials and Hearings. A sustained violation brings a civil penalty, and the violator can be ordered to pay restitution for any fees illegally charged.1NYC Department of Consumer and Worker Protection. Fairness in Apartment Rental Expenses (FARE) Act
Keep copies of any fee agreements, advertisements, and payment receipts. Don’t sign anything under pressure, and ask directly whether a broker represents you or the landlord before you agree to pay.
The Rest of Your Upfront Costs
Even with no broker fee, lease signing in New York involves real cash:
- Security deposit, capped at one month’s rent statewide under the Housing Stability and Tenant Protection Act of 2019. Landlords cannot charge more regardless of apartment type or your credit history.4Division of Housing and Community Renewal. Fact Sheet #9 – Renting an Apartment – Security Deposits and Other Charges
- First month’s rent, due at signing in nearly every transaction.
- Application fee, capped at $20 statewide, which covers background and credit checks.5Rent Guidelines Board. Miscellaneous FAQs
Outside NYC, add the broker’s commission. A tenant renting at $3,500 a month could need more than $10,000 in cash to move in: $3,500 first month, $3,500 deposit, and $3,500 to $6,300 in commission depending on how the broker calculates it. That gap is why the geographic question matters so much, and why it’s the first thing to settle before you start touring.