Broker fees and the FARE Act: you probably don't owe one
For decades, New York renters paid a broker fee - often 12-15% of a year's rent - even for apartments where the broker worked for the landlord. The FARE Act ended most of that.
What the law says (effective June 11, 2025)
- If the broker works for the landlord - including the listing agent - they cannot charge you a fee. The landlord pays their own agent.
- Landlords must disclose all fees a tenant has to pay before you sign a rental agreement, and in listings.
- If you hire a broker to search on your behalf, you can agree to pay them - that's your choice, in writing.
What to watch for
- Fees with new names. "Administrative fee," "listing fee," or "application package fee" from the landlord's agent is a broker fee wearing a costume.
- Dual agents who claim to "also represent you" without a written agreement saying you hired them.
- Landlords raising rent to quietly bake the fee back in. Legal, but it means you should negotiate - you have more leverage than before because the landlord now carries the cost.
If you were charged anyway
Keep the receipt or screenshot, and file a complaint with the NYC Department of Consumer and Worker Protection (DCWP) - they enforce the FARE Act. Tenants can also sue for the fee back plus damages.
General information, not legal advice. Laws change and every situation is different. For advice about your specific case, talk to a tenant lawyer - free help may be available through the city's tenant protection resources or Legal Aid.