What is The FARE Act?

The FARE Act, short for Fairness in Apartment Rental Expenses Act, is a new NYC law designed to make renting fairer for tenants. It was passed by the City Council in late 2024 with overwhelming support (42 votes in favor to 8 against). The law officially takes effect on June 11, 2025, giving everyone time to prepare. So, what does it actually do?

Under the FARE Act, if a landlord hires a real estate broker to help rent out an apartment, the landlord has to pay the broker’s fee, not the tenant. Previously, it was common in NYC for tenants to be stuck paying broker fees even when the broker was working for the landlord. These fees are often huge, typically around 15% of the annual rent (that’s about one and a half months’ rent!). For example, on a $2,500/month apartment, a 15% broker fee would be about $4,500 upfront. That’s on top of the security deposit and first month’s rent, making it very expensive to move. In fact, in 2023, the average New Yorker moving to a new apartment paid nearly $13,000 in upfront costs, including broker fees. No wonder so many renters feel stressed by the process.

The FARE Act aims to eliminate this unfair burden. If a broker advertises an apartment or represents the landlord, they cannot charge the renter a fee anymore. Instead, “whoever hires the broker pays the fee,” and if that’s the landlord, then the landlord must pay the broker’s commission. This brings New York City in line with most other housing markets, where landlords usually pay brokers by default.

Another key part of the law is transparency. Landlords (or their agents) will be required to disclose all other fees a tenant might have to pay up front in the listing and lease agreement. This means no more surprise charges popping up at the last minute – things like application fees, credit check fees (which are capped by state law), or move-in fees must be clearly listed. Before a tenant signs a lease, they must be given an itemized list of every fee they’ll owe. The goal is to prevent hidden costs and make the rental process more straightforward and fair.

The FARE Act is enforced by the NYC Department of Consumer and Worker Protection (DCWP). If someone violates the law, say a broker still tries to make a tenant pay when they shouldn’t, they can face civil penalties (fines) or even legal action. According to the law, fines can range from $500 up to $2,000 for each violation. That might not sound like a lot compared to a big broker fee, but importantly, New York State’s real estate regulators can also step in. The NY Department of State (which licenses real estate brokers) can impose an additional $2,000 fine and even revoke a broker’s license if they break this rule. In other words, there are real consequences for not following the FARE Act.

It’s worth noting that the FARE Act became law in a somewhat dramatic way. The City Council passed it with a veto-proof majority, and when Mayor Eric Adams chose not to sign or veto it, the bill automatically became law after 30 days. The Mayor had expressed last-minute doubts, but by doing nothing, he allowed it to pass. As Councilmember Chi Ossé (the bill’s sponsor) said in celebration, “After too many decades under an unfair and suffocating system, New Yorkers can be free from the forced broker fee once this new law takes effect in June 2025.”  This change is being hailed as a big win for renters who have long felt “captive” to hefty fees.

In summary, the FARE Act is a 2025 NYC rental law that shifts broker fees onto the party that hired the broker (usually the landlord). It bans charging such fees to tenants who never asked for the broker’s help, and it boosts tenant rights by demanding upfront disclosure of any charges. Now, let’s explore why this matters so much for each group: tenants, landlords, and real estate brokers.

Why Tenants Should Care: A Win for NYC Renters

For tenants, the FARE Act is largely good news, and here’s why:

• Huge Savings on Upfront Costs: If you’re a renter in NYC, you know that moving can be extremely expensive. Paying a broker’s fee on top of a security deposit and the first month’s rent can drain your savings. The FARE Act will remove the broker fee obstacle for most renters. If a broker is representing the landlord (for example, the broker’s name is on the apartment listing), you, as the tenant, should not have to pay any broker fee at all. This could save you thousands of dollars when signing a lease. Instead of scrambling to gather, say, $8,000 or more to move into a new apartment (rent + deposit + broker fee), you’d just need the rent and deposit (plus maybe a small application fee). This makes renting more affordable and accessible for working families and young professionals in the city. Tenant advocates note that broker fees have been a major financial barrier that limits housing options for low- and middle-income New Yorkers. Removing those fees means more people can afford to move to apartments that better suit their needs without prohibitive upfront costs.
  
  
• Fairness and Choice: Under the current system (before the FARE Act), you might find an apartment on your own, say on a listing site, only to discover there’s a broker involved who expects you to pay them, even though you never hired them. That feels unfair, and that’s exactly what the FARE Act fixes. Now, tenants won’t be forced to pay for a service they didn’t request. You’ll have more choices. If you want to use a broker by your own choice (to help you search across the market), you still can – but you’ll only pay a broker if you knowingly hired them to represent you. The law specifically says renters are “not obliged to pay a broker fee unless the broker is working directly on their behalf under a contract or agreement.” In other words, no contract = no fee from the renter’s side. This empowers tenants to decide if a broker’s service is worth it for them, rather than being a captive customer.
  
  
• Transparency in Costs: The FARE Act requires landlords and agents to lay out all fees upfront in listings and leases. This is a big win for renters because it means fewer nasty surprises. You’ll know ahead of time if there are any extra fees (for example, maybe a $20 credit check or a $50 key-fob fee) before you even apply. Everything must be itemized before you sign the lease. Knowing the full cost allows renters to budget properly and compare apartments fairly. No more hidden “move-in fees” sprung on you at the last minute.
  
  
• Easier Apartment Hunting: Over half of NYC households are considered “rent-burdened” (spending more than 30% of income on rent). For many, saving up thousands in broker fees was simply unrealistic. By eliminating forced fees, the FARE Act could make apartment hunting less stressful. Renters can focus on whether they can afford the monthly rent, without also worrying about a massive one-time fee. This change might also increase the number of “no-fee apartments” on the market (in fact, after June 2025, all apartments where the broker works for the owner will essentially be “no-fee” to the tenant by law). More no-fee options and less upfront cost mean renters can move more freely to pursue jobs, education, or better living conditions without as high a financial hurdle.
  
  
• Protection from Unfair Practices: The law explicitly prohibits some shady tactics. Brokers are not allowed to condition renting an apartment on your hiring them for something else. For instance, a broker can’t say, “I’ll only show you this apartment if you agree to pay me to also show you other listings.” That kind of pressure is now illegal. If any broker tries to twist the rules or sneak around them, renters have the right to report it. You can complain to the DCWP via 311, or even to the state Department of State, starting June 11, 2025. Knowing your rights as a tenant is crucial, and the FARE Act gives renters a clear right not to pay in scenarios where the broker isn’t their agent. This clarity can give tenants more confidence in negotiations and dealings. If someone tells you otherwise, you’ll know the law is on your side.
  
  

In short, tenants should care about the FARE Act because it puts money back in their pockets and gives them more control. It’s seen as a pro-tenant, pro-affordability law. Governor Kathy Hochul summed it up well: “Renters should not have to face the burden of paying thousands of dollars up front for an apartment, especially when they often are not requesting the services. Come this June, renters will be able to keep their hard-earned money in their pockets.” For anyone looking to rent in NYC, that’s a very welcome change.

Why Landlords Should Care: What It Means for Owners

Landlords in New York City will experience a direct impact from the FARE Act, and it’s important for them to understand the new rules. Here’s why landlords should pay close attention:

• Shifting of Costs to Landlords: The biggest change is that if a landlord uses a broker to find a tenant, the landlord now must pay that broker’s fee. This is essentially a new cost of doing business for many owners. In the past, many landlords would have their broker charge the tenant one month’s rent or more as a fee, effectively getting professional leasing services at no cost to the owner. That’s no longer allowed. Now, owners will need to budget for broker commissions when they hire an agent to rent out a unit. For example, if you own an apartment and list it through a brokerage, you might have to pay that brokerage a fee (perhaps equivalent to one month’s rent or a percentage of the lease). This could affect small landlords significantly. Some may reconsider whether to hire a broker or try to find tenants on their own to avoid paying a fee. Large property owners who routinely use brokers will likely continue to do so, but they must account for this expense.
  
  
• Need to Adjust Business Practices: Landlords should start planning for how they’ll handle listings going forward. Some options include:
  
  
  • Paying the Broker Fee and Adjusting Rent: A landlord might choose to pay the broker out of pocket, but then slightly raise the rent to offset that cost over time. Real estate industry groups (like the Real Estate Board of New York) predict many landlords will incorporate the fee into higher rents. For instance, an owner paying a broker one month’s rent might spread that cost over a year’s lease by asking for a bit more rent each month. However, landlords can’t automatically raise rents beyond what the market will bear; if they set rent too high, tenants may go elsewhere. So there’s a balance to strike. The concern landlords have is that the FARE Act “will make it harder for tenants to find housing, raise rents, and make the hard work of real estate agents even more difficult,” according to REBNY’s president. Landlords should monitor the market to see how competitors react and price their units competitively.
    
    
  • Finding Tenants Without Brokers: Some landlords, especially those with just one or two units, might opt for a DIY approach; listing apartments on free websites or through word of mouth to avoid broker fees entirely. This is feasible, but it means the owner has to handle all the work a broker would normally do (advertising, fielding calls, showing the apartment, handling applications). It could save money, but cost time and effort. Landlords should be prepared for this trade-off if they go solo.
    
    
  • Negotiating Lower Fees or Different Agreements: In some cases, landlords and brokers may negotiate different arrangements. Perhaps a landlord will offer a flat fee or a smaller percentage to brokers, especially if market conditions are easy (like high demand). Since the law says whoever hires pays, owners have an incentive to shop around for brokers with reasonable fees or to negotiate commissions just as they might negotiate any contractor payment.
    
    
• Compliance and Disclosure Requirements: Landlords must ensure they comply with the law’s disclosure rules. That means whenever they or their agent advertise an apartment, they need to clearly state any fees the tenant would have to pay (aside from rent). And before the lease is signed, the tenant gets a written list of these charges. If a landlord fails to disclose fees or tries to sneak a broker fee onto the tenant, they could face penalties of at least $1,000 under the law. Also, if a landlord’s agent (broker) violates the law by charging the tenant, the landlord could potentially get tangled up in that violation, too. So, landlords should communicate with any brokers they hire about these new rules and ensure the broker isn’t charging the tenant illegally. Essentially, landlords will want to stay on the right side of the FARE Act to avoid fines and legal trouble.
  
  
• Market Competitiveness: Landlords should care because this law might change the dynamics of the rental market. If many apartments become “no fee” to tenants, renters may gravitate more to those listings. Prior to the FARE Act, about half of the city’s apartments on the market came with a tenant-paid broker fee. Now, those should all convert to landlord-paid (or no fee to a tenant). An owner who insists on tenants paying fees (against the law) would be at a clear disadvantage and risk penalties. So, practically, to attract tenants, landlords will embrace the no-fee model. In competitive rental markets, landlords who handle the broker fee might have an easier time filling vacancies (because, from a tenant’s perspective, a no-fee apartment is much more affordable upfront). In short, understanding and adapting to the “NYC broker fee changes 2025” is crucial for landlords to remain competitive and compliant.
  
  
• Long-Term Benefits: Some landlords might find a silver lining. If tenants don’t have to spend all their cash on fees, they might be more likely to pass rigorous income and savings checks or be able to afford slightly higher rents over time. The rental process could become smoother with clearer roles: landlords formally hiring and paying brokers could lead to more professionalized service and accountability (since the broker’s loyalty will clearly be to the paying client, i.e., the landlord). Also, by advertising “No Broker Fee” (which, effectively, many will be after the FARE Act), landlords could attract a larger pool of applicants, possibly filling vacancies faster. These are potential upsides to consider while adjusting to the new system.
  
  

Bottom line for landlords: The FARE Act means a change in who cuts the check for broker services. It’s an added expense for owners who use brokers, so they should plan for it in 2025 and beyond. But it also could mean happier tenants and quicker rentals if handled correctly. Landlords who stay informed about NYC rental laws 2025, especially this one, will be better prepared to adapt without disrupting their rental business.

Why Real Estate Agents Should Care: Impact on Brokers and Agents

The FARE Act directly affects real estate brokers and agents in NYC, especially those involved in rentals. If you’re a broker or agent, here’s what you need to know and why it matters:

• Who Pays You Changes: The core of the FARE Act is simple: if you’re a broker working for a landlord, you must get your fee from the landlord, not the tenant. This is a big shift in practice. Many NYC rental agents are used to collecting their commission from tenants. Going forward, agents will need to adjust their business model. If you list an apartment (with the owner’s permission) and find a tenant, you will send the bill to the landlord. You cannot demand payment from the renter for those transactions anymore. This means agents will likely need to secure agreements with landlords upfront about the commission rate and payment terms. In other cities, it’s common for landlords to pay brokers (sometimes called an “owner-paid fee” or offering one month’s rent as commission). NYC agents will now operate more like those markets. Real estate brokerages should educate their rental agents that asking a tenant for a fee in these cases is illegal under the FARE Act.
  
  
• No More “Surprise” Fees to Tenants: The law basically clarifies the agent’s role. If you’re showing an apartment that you or your firm advertised, the renter will presume (correctly) that you represent the landlord. Unless you have a separate written agreement with a renter to represent them, you should not be charging them. Agents should clearly disclose who they represent. New York State law already requires brokers to give prospective clients a disclosure form about who the broker is representing (landlord, tenant, or both), expect that to be even more important now. As one broker explained, “Renters should know that they’re not obliged to pay a broker fee unless the broker is working directly on their behalf under a contract or written agreement.” Transparency will be key. If a renter contacts you from a listing, you may want to explicitly say, “Just so you know, I represent the landlord for this apartment, so there’s no broker fee for you under the new law.” That builds trust and avoids confusion.
  
  
• Can’t Game the System: Some agents might be thinking of workarounds, but beware – the law anticipated that. For instance, you cannot force or pressure a renter to sign you as their agent just to see an apartment. The FARE Act forbids brokers from “conditioning the rental of an apartment on a tenant engaging any agent.” That means you shouldn’t say, “Before I show you this place, sign this agreement to hire me as your tenant broker.” If a renter comes to see a specific listing you advertised, you remain the landlord’s agent for that listing. Trying to flip them into a client so you can charge a fee could violate the law. Not only is that unethical, but it could get you in trouble with regulators.
  
  
• Enforcement and Penalties for Brokers: Real estate agents need to be aware of the penalties. If you violate the FARE Act by charging an improper fee, the city can fine you $500-$2,000 per violation. More frightening, the state could also step in and potentially suspend or revoke your real estate license (on top of a fine). Your reputation is also at stake; renters will likely be knowledgeable about this law (it’s been widely reported as a major change in NYC tenant rights), and a broker caught demanding illegal fees could be called out publicly or on social media. It’s just not worth the risk. The safer path is to comply and adjust your practices.
  
  
• Adapting Business Strategy: While the transition might be bumpy, there are ways brokers can adapt:
  
  
  • Focus on Landlord Relationships: Brokers may put more effort into signing exclusive listing agreements with landlords and convincing them of their value so that owners are willing to pay the commission. It may involve educating landlords that paying a broker can still be beneficial if it results in a good tenant quickly. Brokers who primarily worked with open listings might lean towards formal agreements to ensure they get paid by the owner.
    
    
  • Represent Renters (Tenant Brokerage): Some agents might pivot to working for renters as their clients. In this scenario, a renter can hire a broker to search the market, schedule tours, and guide them, and the renter would pay that broker a fee (which is legal if there’s a contract). However, note that many renters prefer not to pay fees, so this model might appeal only to those who want a concierge-level service or are looking in very competitive markets. If you go this route, know that broker fees are always negotiable and typically range from 10% to 15% of annual rent; you’d have to clearly agree on the fee in writing with your client. You should also expect to provide a Renter-Broker Agreement for the client to sign, spelling out the fee and services. This wasn’t standard in NYC before (since tenants usually didn’t formally hire brokers), but it will likely become more common.
    
    
  • Volume and Efficiency: With the law change, some brokers worry about fewer deals or lower income (if, say, some landlords decide not to use brokers). But others, like one NYC brokerage CEO, remain optimistic: NYC’s market has weathered bigger changes, and “everybody’s ended up in even a better spot than before” eventually. Brokers who embrace the change can still thrive. For example, no-fee listings might attract more interest, meaning more potential clients to show, which could lead to faster deals (even if the owner pays you a bit less than you might have gotten from a tenant, the increased volume could balance it out).
    
    
• Initial Uncertainty: It’s true that there are unknowns in how the industry will respond. Many large brokerages have been tight-lipped about their plans leading up to June 2025. As an agent, you should stay informed through your brokerage, professional networks, and NYC real estate news. There might be legal challenges (in fact, industry groups did file a lawsuit to try to block the law in late 2024, more on that in the Misconceptions section). But unless that succeeds, you should operate on the assumption that the FARE Act rules will be in effect. Brokers might see some chaotic times in the summer of 2025 as everyone adjusts. The best approach is to educate yourself, follow the law, and communicate clearly with both landlords and renters. This way, you’ll maintain trust and avoid liability.
  
  

In summary, real estate agents should care about the FARE Act because it changes how they get paid and who their client is in many rental transactions. By adapting to the NYC broker fee changes, brokers can continue to do business, just with a different payment model. Those who ignore the changes risk fines or losing their license. But those who adjust can still succeed and possibly win goodwill from happier clients. Remember, an agent who tells a renter “you don’t owe me a fee for this unit” might gain that renter’s trust (and maybe their business in the future). It’s all about navigating the new landscape professionally.

Common Misconceptions about the FARE Act

Whenever a new law comes around, people often get some details wrong. Let’s clear up a few common misconceptions about NYC’s FARE Act:

• Misconception 1: “All broker fees are banned in NYC now.”
  
  Reality: Not exactly – the law isn’t a blanket ban on broker fees. What it does is ban forcing tenants to pay a broker who was hired by the landlord. If you’re a renter dealing directly with a landlord’s broker (e.g., contacting an agent from a listing), you won’t have to pay that broker. However, if you decide to hire your own broker to help you find a place, you can still do that and pay them for their service. The difference is choice and representation. The FARE Act ensures that tenants only pay broker fees when they’ve actively hired a broker to work for them. In those cases, a broker can charge a fee, but it must be agreed upon in writing beforehand. So, broker fees can still exist, but tenants won’t be stuck paying a fee to the landlord’s broker anymore.
  
  
• Misconception 2: “Renters will never pay any fees at all after this.”
  
  Reality: The FARE Act removes one big fee (the landlord’s broker fee) from renters’ shoulders, but it doesn’t eliminate every possible fee. Tenants might still encounter small application fees (capped at $20 by state law), credit check fees (also capped), or fees for amenities in some buildings, but all those have to be disclosed upfront now. Also, as mentioned, a tenant could voluntarily pay a broker they hired themselves. What is gone is the era of four-figure “surprise” broker bills presented by a landlord’s agent. Another thing to clarify: security deposits and first month’s rent aren’t affected by this law. You still need to pay those as before. The law targets broker commissions specifically. So while renters will still need some savings to move, they won’t need that extra 12–15% of annual rent for a broker they never picked.
  
  
• Misconception 3: “Landlords will just raise the rent the same amount, so tenants save nothing.”
  
  Reality: This is a hot topic. Critics of the law (including some landlords and the brokers’ lobby) argue that landlords will compensate by raising rents equal to the broker fee they now pay. It’s possible that some landlords will try to recoup the cost in rent, but it’s not as automatic or straightforward as it sounds. Here’s why:
  
  
  • Market Forces: Rent prices are determined by supply and demand in the market. If a landlord could have charged more rent, they probably would have already done so. Many landlords were charging the maximum rent that tenants were willing to pay, in addition to offloading broker fees on tenants. If they raise rent too much to cover a broker fee, they might price themselves above comparable apartments and struggle to find tenants. The FARE Act applies to all NYC landlords, so one landlord can’t just add, say, $400 a month to rent in a vacuum; tenants will compare with other no-fee listings.
    
    
  • One-Time Fee vs. Ongoing Rent: A broker fee is a one-time cost, whereas rent is an ongoing cost. Some landlords might raise the rent slightly (spread over 12+ months) to cover paying a broker. For example, if a landlord pays a broker a fee equal to one month’s rent (let’s say $2,500), they might try to add roughly $200 extra per month to the rent over a year to offset it. For the tenant, that’s $200 more in rent, but crucially, they didn’t have to produce $2,500 upfront at lease signing. Many renters prefer a manageable monthly increase to a huge upfront expense.
    
    
  • Tenant Savings and Mobility: Even if some rent increases happen, tenants still benefit by needing less cash to move in. Plus, the law could pressure landlords not to jack up rents excessively because tenants will have more choice (they’re not stuck with only half the market due to fee costs). The Legal Aid Society and other supporters believe this law will indeed result in more affordability for tenants overall. Governor Hochul also highlighted that it “advances the critical goal” of giving New Yorkers a fair chance at housing. We may see some rent adjustments, but it’s unlikely to equal the full broker fee in every case. Time (and market data) will tell, but the immediate relief of not needing thousands upfront is a real benefit that shouldn’t be dismissed.
    
    
• Misconception 4: “No one will help renters find apartments now; brokers will all quit.”
  
  Reality: The NYC rental brokerage industry isn’t going to disappear, though it may change behavior. Brokers still earn commissions, just typically from landlords now. In many cities, rental agents work on an “owner pays” basis, and the market functions. We might see more landlords hiring in-house leasing staff or using lower-cost marketing for low-margin rentals, but NYC has a massive and fast-paced rental market, so it’s likely brokers will remain very involved. Some brokers might focus on higher-end rentals or work more with landlords who are comfortable paying. Others might offer premium services to tenants who choose to hire them. Apartments will still be listed (brokers want to make deals happen), and renters will still be able to find places. Actually, it could become easier to approach listings since you know you won’t be ambushed with a fee. There could be a period of adjustment (expect the first summer to be a learning curve for everyone ), but it won’t “throw the housing market into disarray” as some feared. Brokers have adapted to changes before, and many are already figuring out how to operate under the FARE Act. Some large firms have even publicly supported fairer fee practices. So don’t worry, you’ll still see plenty of listings on StreetEasy, Zillow, etc., and brokers eager to rent them (just now they’ll advertise “No Fee” more often).
  
  
• Misconception 5: “The FARE Act might not actually happen because of a lawsuit.”
  
  Reality: As of now, the FARE Act is slated to start on June 11, 2025. It’s true that the Real Estate Board of New York (REBNY) and some brokerage companies filed a lawsuit in December 2024 to try to block the law. This created some uncertainty. However, two separate legal experts commenting in the news have said the lawsuit seems unlikely to succeed. Importantly, New York State’s government has come out strongly in support of the FARE Act; the state even filed an amicus brief (a legal document to assist the court) arguing that nothing in state law prevents NYC from implementing this local law. Governor Hochul herself publicly backed the FARE Act and called the lawsuit a “meritless attempt to delay relief” for renters. While we can’t predict court outcomes with certainty, the broad support and legal stance suggest that the FARE Act will indeed go into effect as planned. Unless a court injunction says otherwise, tenants and landlords should expect the law to be active in June 2025. So don’t bank on it being overturned, prepare as if it’s coming (because it likely is).
  
  

By addressing these misconceptions, we see that the FARE Act is neither a magic fix for every housing issue nor a doom-and-gloom scenario. It’s a targeted reform: ending forced broker fees on tenants, improving transparency, and trying to make rentals fairer. Understanding the facts will help you navigate the new landscape come June.

Lesser-Known Facts about the FARE Act

Beyond the basics, here are some interesting and lesser-known facts about the FARE Act that most people might not be aware of:

• It’s named for Fairness in Expenses: FARE is an acronym that stands for Fairness in Apartment Rental Expenses. The focus is specifically on the “expenses” part of renting. By targeting broker fees, the city aimed to cut down one of the largest unfair expenses for renters. It’s all about fairness, making sure renters aren’t unfairly saddled with costs that others (in other cities or in other transactions) don’t typically bear.
  
  
• NYC’s Outlier Status: New York City was one of the only places in the country where tenants routinely paid the landlord’s broker fee. In most U.S. housing markets, if a landlord hires a leasing agent or broker, the landlord pays their commission. NYC’s practice was an unusual (and infamous) custom. This law corrects that anomaly. In other words, the FARE Act isn’t some radical experiment; it’s actually bringing NYC more in line with standard rental practices elsewhere. Many newcomers to NYC are shocked by broker fees; after FARE, NYC will be a little more normal in that regard.
  
  
• The 2020 Precedent: This isn’t the first attempt to relieve tenants of broker fees. Back in February 2020, guidance from the New York State Department of State briefly effectively banned tenant-paid broker fees. However, REBNY sued, and a judge put that on hold almost immediately. Eventually, the courts sided with the real estate lobby, and that 2020 effort died. The FARE Act is different because it’s a city law passed by legislation (not just an agency memo), and it was crafted to avoid the legal pitfalls of the 2020 attempt. It explicitly amends the city’s administrative code regarding rental transactions. This legislative approach, plus the support from the state government, gives it a much stronger footing. Many people outside the real estate world don’t know how close broker fees came to being banned in 2020, or that the fight has been ongoing for a few years. The FARE Act is basically the culmination of that fight, achieving through the City Council what couldn’t stick through administrative action.
  
  
• Overwhelming Support (and a Mayor’s Unusual Approval): The FARE Act was extremely popular in the City Council, with a veto-proof majority. When you have 42 out of 51 council members on board, it sends a strong message. Mayor Adams did not sign the law, reportedly due to some reservations, but because he also didn’t veto it, it became law by default. This is a little unusual; typically, mayors either sign or veto significant legislation. In this case, by doing nothing, the Mayor allowed it to pass. Some speculate it was a political strategy, not openly opposing a tenant-friendly law, but not endorsing it either. Regardless, it shows the City Council’s determination. The law’s primary champion, Councilmember Chi Ossé, is a younger council member who experienced high broker fees firsthand while apartment hunting. His personal story (struggling to afford fees while looking for a home) helped propel the bill. The act also received “indispensable” support from dozens of tenant advocacy groups and even labor unions who saw housing affordability as a priority. So, behind this law is a broad coalition of support that might not be obvious at first glance.
  
  
• Transparency and Disclosure – New Norms: A feature of the FARE Act that hasn’t gotten as much press is the detailed disclosure requirement. It’s not just about broker fees; it’s about all upfront fees. The law mandates that before lease signing, tenants get an itemized list of fees they must pay to the landlord or others. This means things like pet fees, move-in deposits, amenity fees, etc., should all be listed. If it’s not listed, a tenant could challenge it. Also, any listing posted must mention the existence of those fees so people aren’t blindsided. If a landlord or broker fails to do this, they can be fined (at least $1,000 for non-compliance). This aspect is a win for transparency in the rental process and is something many renters’ rights advocates have wanted. Now it’s codified. Many renters and even landlords might not yet know about this provision, but it’s going to change how listings are written (expect to see more detail in the “Additional Fees” or “Rental Terms” sections of apartment ads).
  
  
• Enforcement Could Be a Challenge: A little-known fact is that the fines for breaking this law, at least the city fines, might be lower than the broker fee itself. For example, if a broker tried to charge a $3,000 fee illegally, they risk a fine that could be as low as $500 (though it could be up to $2,000). Because of this, some skeptics worry that a few bad actors might try to skirt the law, especially if they think enforcement is weak. However, the state’s ability to revoke a license is a strong deterrent. Plus, the court of public opinion in the age of social media is another enforcement tool; nobody wants to be the broker or landlord blasted online for breaking the FARE Act. The city will rely on tenants to report violations (through 311 and a state complaint form). So one fact is: tenant vigilance is part of enforcement. If you know the law and speak up, the system is more likely to work. On the flip side, most established brokerages will likely over-comply rather than risk it. They have reputations and licenses to protect.
  
  
• Support from the State Government: It’s not every day that a city law gets a cheer from the Governor, but that’s what happened here. Governor Kathy Hochul publicly supported the FARE Act and even incorporated it into her talking points about housing affordability. She sees it as complementary to statewide tenant protections. The state’s amicus brief in the lawsuit is also a big deal – it’s basically the state saying,“we’re okay with NYC doing this.” That backing makes it hard to argue that the city overstepped (one of REBNY’s arguments was that NYC didn’t have the authority; the state disagrees). This level of state-city cooperation on a tenant issue might surprise people who assume Albany and NYC are often at odds. It’s a sign that housing affordability is high on the political agenda.
  
  
• FARE Act and Broker Innovation: Here’s a forward-looking fact: the FARE Act might encourage innovation in the NYC real estate industry. With the old fee system disrupted, we could see new business models emerge. Some tech-based brokerages might start offering lower-cost services to landlords (knowing landlords now pay). Or more “freemium” models where basic listings are free but owners pay for add-ons like premium placement or video tours. It’s speculative, but interesting to note that whenever a market rule changes, creative solutions often pop up. For tenants, this could eventually mean easier access to listings (maybe more direct-to-owner platforms), and for brokers, perhaps new ways to monetize their expertise (like consulting services for DIY landlords, etc.). While not a “fact” in the historical sense, it’s a lesser-discussed aspect that the FARE Act could modernize how NYC rentals are done.
  
  

These facts show that the FARE Act is not just a simple tweak. It’s a significant reform with a backdrop of history, politics, and consumer rights. Being aware of these tidbits can give you a fuller understanding of how we got here and what to expect.

Conclusion: A Fairer Future for NYC Rentals

The FARE Act represents a major step towards a more tenant-friendly and fair rental market in New York City. By shifting broker fees off of tenants, it tackles one of the long-standing pain points of renting in NYC. Renters will see immediate relief in upfront costs and gain more transparency and choice. Landlords will have to adapt to a new cost structure and ensure they follow the rules, but in doing so, they might find more satisfied renters and a smoother leasing process. Real estate brokers will adjust their practices, focusing on who their true client is in each deal, and continue helping people find homes, now under clearer, fairer terms.

As with any big change, there may be an adjustment period. The summer of 2025 might be a bit of a learning experience for all parties in the NYC housing scene. But the overarching goal is clear: to make finding a home in New York City a little less daunting and a lot more fair in terms of expenses. In a city where so many are rent-burdened and every dollar counts, eliminating unfair broker fees can be a game-changer.

If you’re a renter, come June 2025, you should feel empowered to assert your rights – you don’t have to pay a broker who isn’t working for you. If a landlord’s agent asks you for a fee, you can point them to the new law (and even report them if they insist). If you’re a landlord, now’s the time to revisit your leasing strategy and possibly incorporate the cost of broker services as a normal business expense. And if you’re a broker, remember that being transparent and following the law will ultimately earn you trust and business in the long run.

The FARE Act is ultimately about fairness and affordability. As Council Speaker Adrienne Adams said, the Council’s focus is on “improving the lives of working- and middle-class families” and keeping New Yorkers in the communities they love. By cutting out forced fees, the city is taking a step to ensure that moving into a new apartment doesn’t come with an unfair financial burden. It’s one piece of the larger puzzle of NYC housing, but an important piece nonetheless.

Come what may, lawsuits or debates, the momentum is clearly toward a rental market where costs are more transparent and aligned with who is receiving the service. NYC’s rental laws in 2025 are evolving, and the FARE Act is at the forefront of that evolution. Keep this information in mind as you navigate the market, and you’ll be prepared for a fairer, fee-free (for tenants) future. After all, finding a home in “the greatest city in the world” should not mean paying extra for something you never asked for. With the FARE Act, New Yorkers can look forward to a renting experience that is a bit more reasonable and just a bit easier on the wallet.