This week marks one year since NYC’s FARE Act banned tenant-paid broker fees. Landlords who hire a broker now pay that broker, not you. Here is what actually happened to the rental market in the 12 months since, and what it means for renters and future buyers in Staten Island and Brooklyn.
What is the NYC FARE Act and what did it change?
The Fairness in Apartment Rental Expenses Act, the FARE Act, is the NYC law that banned tenant-paid broker fees. It passed the City Council in November 2024 by a veto-proof 42 to 8 vote and took effect on June 11, 2025. The core change is simple: if a broker is hired by the landlord to advertise an apartment, the landlord pays that broker, not the tenant. Renters can still hire their own broker and pay for that themselves, but the old practice of a landlord hiring a broker and forcing the tenant to pay thousands is now illegal. Questions about renting or buying in NYC? Reach out.
Did rents go up after the NYC broker fee ban?
Some asking rents rose as landlords priced the broker fee they now have to cover into the monthly rent. But that is not the whole story. The fee used to be a large one-time upfront cost, often 12 to 15 percent of annual rent, while any rent increase is spread across the whole lease. For most renters the upfront move-in cost dropped significantly even if the monthly number ticked up. Want help running your actual numbers? Let’s talk.
How much money does the broker fee ban save NYC renters upfront?
Before the law, the typical broker fee ran 12 to 15 percent of annual rent, often $5,000 to $8,000, on top of first month and a security deposit. According to StreetEasy data, the average total upfront move-in cost in NYC was roughly $12,951. Removing the tenant-paid broker fee takes a major chunk out of that number, which is a real difference for younger renters and first-time NYC arrivals without large savings. Reach out and I’ll break down your move-in math.
Does the broker fee ban affect people buying a home in NYC?
Not directly, the FARE Act is about rentals. But it matters for buyers indirectly. Lower upfront rental costs make it a little easier for would-be buyers to save for a down payment while renting, and the policy is part of a broader NYC affordability shift worth watching. If you are renting now but planning to buy in Staten Island or Brooklyn, the timing of that jump is exactly the kind of thing I help clients plan. Let’s map out your path from renting to owning.
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