NYC Broker Fees: Who Pays Under the FARE Act?

Under NYC's FARE Act, the landlord pays the broker the landlord hired. A prospective tenant does not pay that broker's fee. The Fairness in Apartment Rental Expenses (FARE) Act is Local Law 119 of 2024. According to the NYC Department of Consumer and Worker Protection, it took effect citywide on June 11, 2025, as explained in its FARE Act FAQ.

Table of Contents

• What changes for renters?
• Which brokers count as the landlord's agent?
• When can a tenant still pay a broker?
• What fees, disclosures, and enforcement remain?

What changes for renters?

Under the rule, a landlord's hired broker cannot charge or collect a fee from a prospective tenant. The landlord pays for the broker it hires, according to the NYC Department of Consumer and Worker Protection in its FARE Act FAQ. This covers common leasing work done for the owner. Showing the unit, marketing it, screening applicants, and preparing the lease all point to the landlord side.

In those cases, the tenant owes no broker fee to that broker. For example, an agent hired by the owner shows a $2,500 unit and asks the applicant for one month as a broker fee. The applicant does not owe that fee. The owner owes it.

Which brokers count as the landlord's agent?

A listing agent who publishes a rental listing with the landlord's permission counts as the landlord's agent. The NYC Department of Consumer and Worker Protection applies a rebuttable presumption that permission exists. That presumption matters for renters. An agent cannot avoid the rule by saying the landlord never gave written approval.

The agent must rebut the presumption to show a different role. Ask at first contact who the agent represents. Save the listing, messages, and any fee request. Written records help if payment responsibility is disputed.

When can a tenant still pay a broker?

A tenant may still voluntarily hire and pay a personal broker. NYC Council Member Chi Ossé explains that a tenant cannot be forced into dual agency, as described in The FARE Act. A landlord cannot require payment of a broker fee as a condition of renting. Voluntary means the tenant chose the broker and agreed to pay.

It does not mean signing a broker form handed over at a showing. If help was not requested, do not sign. A tenant's own broker works for the tenant, finds options, attends showings, and negotiates terms. That broker is paid by the tenant under a separate agreement. Keep that agreement apart from the lease file.

What fees, disclosures, and enforcement remain?

The NYC Rent Guidelines Board says landlords or their agents must disclose all other tenant-paid fees in listings and rental agreements before the tenant signs. That means amenity, processing, trash, or similar charges must appear early. Compare listings carefully and keep copies of each version. The FARE Act does not bar background and credit check charges allowed under Real Property Law Section 238-a, according to the NYC Department of Consumer and Worker Protection.

An illegal landlord-broker fee cannot be charged after June 11, 2025, even if the lease was signed earlier. Council Member Chi Ossé notes tenants in that position can seek enforcement and restitution. The NYC Department of Consumer and Worker Protection enforces the law and can impose civil penalties and bring civil action, as explained in its enforcement guidance. To act, take these steps:.

• Write down who requested the fee, the amount, address, and date.
• Keep the listing, lease draft, receipts, texts, and emails.
• File a complaint online with the Department or call 311.

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