What is the FARE Act? What NYC Renters Need to Know
If you're renting in New York City, understanding your rights is key — especially when it comes to fees. That’s where the FARE Act comes in.
The FARE Act (short for Fairness in Apartment Rental Expenses) is proposed legislation aimed at rebalancing who pays the broker fee in a rental transaction — a cost that has long been a pain point for NYC renters.
🔍 What Does the FARE Act Propose?
Currently, tenants often pay a broker’s fee even when the agent was hired by the landlord — a fee that can be as high as 15% of the annual rent. Under the FARE Act, that would change.
Here’s what the Act aims to do:
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Whoever hires the broker pays the fee.
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If the landlord hires the agent to market the unit, the landlord would pay the broker's fee.
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If the tenant hires an agent to find them an apartment, the tenant would still pay.
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This would bring transparency and fairness to the rental process — and shift some of the financial burden away from renters, who already face steep move-in costs.
Why Is This Important for Renters?
Renting in NYC often comes with:
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First month’s rent
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Security deposit
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Application fees
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Plus a broker fee — even when you didn’t ask for one
The FARE Act recognizes that if a landlord is benefiting from the broker’s service (like marketing or showing the unit), then they should cover that cost — not the tenant.
My Advice as a NYC Real Estate Advisor
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Always clarify upfront whether a listing is "no-fee" or if a broker’s fee applies.
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If you're working with me or my team, we’ll break down all costs transparently and negotiate on your behalf whenever possible.
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If the FARE Act becomes law, it will dramatically shift the rental landscape — making it easier, fairer, and more affordable for renters to navigate NYC’s market.
