Market · September 15, 2026 · 4 min read
The FARE Act: What NYC Renters and Landlords Need to Know
How New York City's FARE Act changed who pays broker fees on rentals, what landlords must disclose, and how renters can still work with their own agent.
Lexington Residential
Licensed Real Estate Salesperson, Platinum Forbes Global Properties
New York City's Fairness in Apartment Rental Expenses (FARE) Act took effect on June 11, 2025. It changed one of the most familiar parts of renting in New York: the broker fee.
The core rule
Whoever hires the broker pays the broker. When a landlord hires an agent to list an apartment, the landlord — not the tenant — pays that agent's fee. Listings must also clearly disclose any fees a tenant is required to pay.
What it means for renters
- You should not be charged a fee by the landlord's listing agent.
- You can still hire your own agent to search on your behalf; in that case you agree on the fee in writing up front.
- Read every listing's fee disclosure carefully.
What it means for landlords
Owners now budget for leasing costs directly. A well-priced, well-marketed apartment that leases quickly is usually the best way to reduce vacancy and total cost. Lexington Residential has leased more than 80 apartments in Brooklyn and Manhattan and can advise owners on pricing and presentation.
This article is general information, not legal, tax or financial advice. Questions about your situation? Contact Lexington Residential.
