NYC’s New Rental Law: The FARE Act Takes Effect June 11, 2025

What Is Happening?

Starting Wednesday, June 11, 2025, New York City’s Fairness in Apartment Rental Expenses (FARE) Act goes into effect, bringing a major change to how broker fees are handled in the city’s rental market1256.

Key Changes Under the FARE Act

• Who Pays Broker Fees?
  • If a landlord hires a broker to list or show an apartment, the landlord must pay the broker fee.
  • If a renter hires a broker to help them find an apartment, the renter pays the broker fee1256.
  • This ends the common practice where tenants were forced to pay broker fees—even when they had no say in hiring the broker.
• Fee Disclosure
  • All fees that tenants might be expected to pay must be clearly disclosed in listings and rental agreements56.
• Penalties for Violations
  • Brokers who break the rules could face fines starting at $750 and up to $2,0001.

Impact on Renters

• Lower Upfront Costs
  • The average upfront cost to rent an apartment in NYC is expected to drop by about 42%, from nearly $13,000 to around $7,500, according to StreetEasy estimates146.
  • Renters will no longer be responsible for broker fees unless they specifically hire a broker themselves.
• Greater Transparency
  • All tenant fees must be listed upfront, reducing the chance of surprise charges56.

Legal Status and Ongoing Litigation

• The Real Estate Board of New York is challenging the law in court, claiming it violates free speech and contract rights. However, unless a judge intervenes, the law will take effect as scheduled16.

Summary Table: Old vs. New Broker Fee Rules

Scenario	Before June 11, 2025	After June 11, 2025 (FARE Act)
Landlord hires broker	Tenant pays broker fee	Landlord pays broker fee
Renter hires broker	Tenant pays broker fee	Tenant pays broker fee
Fee disclosure	Often unclear	Mandatory, upfront disclosure
Average upfront rental costs	~$13,000	~$7,500

What Should Renters Do?

• Review all listings carefully for fee disclosures.
• If asked to pay a broker fee for a broker you did not hire, you can report the violation to the Department of Consumer and Worker Protection via 3116.

This law is expected to make renting in NYC more affordable and transparent for tenants, starting June 11, 202512456810.

Add to follow-up

Check sources

1. https://www.timeout.com/newyork/news/a-new-rental-law-is-going-into-effect-on-wednesday-heres-what-to-know-060925
2. https://portal.311.nyc.gov/article/?kanumber=KA-03665
3. https://portal.311.nyc.gov/article/?kanumber=KA-03296
4. https://secretnyc.co/fare-act-nyc-2025-apartment-hunting/
5. https://streeteasy.com/blog/fare-act-nyc-broker-fees-renters/
6. https://www.elikarealestate.com/blog/the-fare-act-broker-fee/
7. https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/
8. https://council.nyc.gov/press/2024/12/14/2770/
9. https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf
10. https://www.cbsnews.com/newyork/news/nyc-broker-fee-law-fare-act/
11. https://ag.ny.gov/sites/default/files/tenants_rights.pdf

Sources: https://tv503.com/?p=27162

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