What Brooklyn Tenants and Property Managers Should Know About the Fairness in Apartment Rental Expenses (FARE) Act

Chances are, if you’re a New Yorker, you know what a broker’s fee is—a sum real estate agents charge tenants to help them secure an apartment. But a new law just took effect that shifts who is responsible for paying this fee.

If you’re currently apartment hunting or following local news, you may have heard about the Fairness in Apartment Rental Expenses (FARE) Act, which went into effect on June 11, 2025.

Here’s a quick rundown of what the law does and how it changes the rental process for New Yorkers.

What is the FARE Act?

The FARE Act is a new law prohibiting brokers who represent landlords from charging broker fees to tenants. Instead, the party hiring the broker—typically the landlord or property manager—must pay the fee.

Landlords, property managers and their real estate agents must now disclose all rental fees in both listings and rental agreements. This includes both upfront and recurring costs. Before a lease is signed, tenants must receive an itemized list of these fees along with a brief description of each one.

Note: Landlords are still allowed to charge tenants for background checks and credit checks.

How is this different from before?

Before the FARE Act, NYC brokers often charged tenants fees of up to 15% of the annual rent. NYC was one of the last major U.S. cities where tenants were typically on the hook for these fees.

What if I’m a tenant who hires a broker directly?

If you hire a broker to help you find an apartment, you are still responsible for paying their fee. In some cases, a landlord may agree to cover it, but they are not required to.

Is a landlord/property manager held responsible if their agent violates the FARE Act?

Yes, if a broker acting on behalf of a landlord charges a fee to a tenant in violation of the law, the landlord would be held liable.

Is there a financial penalty for non-compliance?

Yes, violations of the FARE Act can result in penalties of up to $2,000.

What if I signed a lease before June 11, 2025?

If you signed a lease before the FARE Act took effect but you have not yet paid a broker fee, you are no longer required to pay it.

Is this a win for Brooklyn renters?

For many renters, it lowers the barrier to entry by reducing upfront costs. That said, some landlords might attempt to offset the cost of broker fees by raising the monthly rent. However, around 44% of NYC rental units are rent-stabilized, meaning rent increases are capped by city regulations. A modest increase in rent-stabilized unit rates has recently been approved and is expected to start in October 2025, as reported by The New York Times.

Where can I read more about the FARE Act?

For more details, visit the NYC Department Consumer and Worker Protection or the Real Estate Board of New York (REBNY).

• Not Your Grandma’s Wallpaper
• Date Night Ideas at NYC Black-Owned Businesses
• Croatia is Europe’s Best Kept Secret!
• ART BREAK #7 — Celebrating Brooklyn Artist Simmi Singh
• Sounds of Home Playlist: A Real Estate Song for Every Mood
• Buying a Fixer-Upper Apartment: Tips From an Experienced Renovator/Real Estate Agent