Big changes are shaking up the New York City rental market. With the Fairness in Apartment Rental Expenses (FARE) Act gaining momentum in 2025, both landlords and tenants need to rethink how they approach rental agreements—especially when it comes to broker fees.
Whether you're leasing out an apartment or trying to secure one, understanding these changes will give you a serious edge in this competitive market.
What is the FARE Act?
The FARE Act is a piece of legislation introduced to prohibit tenants from being forced to pay the landlord’s broker fee. In other words, if the landlord hires the broker, the landlord pays.
This change comes in response to years of complaints from NYC renters facing upfront costs of 12–15% of annual rent, just to move in.
Current Status:
As of mid-2025, the FARE Act has advanced in the NY State Senate and is gaining serious traction. Full passage could come before the end of the year.
How This Impacts NYC Landlords
If passed, the Act means landlords will no longer be able to pass off the broker fee to tenants when they hire an agent to market or show the unit.
What landlords should do:
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Reprice units strategically to stay competitive while accounting for new out-of-pocket costs.
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Hire brokers who can add serious value—through marketing, tenant screening, and negotiation.
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Consider offering incentives (1 month free, flexible lease start dates) to attract quality tenants fast.
What NYC Renters Need to Know
For tenants, this act could be a major win—saving thousands in upfront costs. But it also means higher monthly rents might become the new normal.
Pro renter tip:
Start your search early, get your paperwork ready, and expect properties with no broker fees to go fast.
Who Pays What? Breaking Down the New Model
| Service | Old Model | New Model (FARE Act) |
|---|---|---|
| Broker fee for landlord-hired agent | Tenant pays | Landlord pays |
| Tenant-hired agent | Tenant pays | Still tenant pays |
| No agent used | No fee | No fee |
What This Means for NYC Real Estate Agents
Agents who can clearly demonstrate their value to landlords will continue to thrive. Those relying on tenants to pay by default? It’s time to adapt.
Aadel’s Advice:
“We’re not just showing apartments. We’re marketing lifestyles. The agents who thrive in 2025 will be the ones who help landlords maximize exposure and minimize vacancy.”
Final Thoughts: Be Ready for the Shift
The FARE Act is poised to reshape the NYC rental experience. Whether you're a landlord or tenant, understanding the rules—and planning ahead—could save you time, stress, and thousands of dollars.
📞 Want to Discuss Strategy?
If you're a landlord looking to price your property properly—or a renter searching for listings—I'm happy to help.
