Landlord guide

The FARE Act: a practical guide for NYC landlords

Last updated October 16, 2026

Since June 11, 2025, NYC landlords pay the broker they hire. For many owners that's a new cost they never had to budget for, on top of rising taxes, insurance and repairs.

The Fairness in Apartment Rental Expenses Act (Local Law 119 of 2024) is enforced by the city's Department of Consumer and Worker Protection (DCWP). In July 2026 a federal appeals court upheld the law, so it is here to stay.

This guide covers what the law requires, how to stay compliant and avoid fines, and practical ways to keep your leasing costs as low as possible.

What changed for landlords

A broker who represents you can no longer charge your tenant anything. That includes any agent who publishes a listing with your permission, and the law presumes a listing agent has your permission.

You pay your broker. The fee you agree with your listing agent comes out of your pocket, not the renter's.
You're responsible for your agent. If your agent or a listing agent charges a tenant a fee to rent your apartment, you can be held liable.
You can't require a broker. You can't make renting the apartment conditional on the tenant using a particular agent, a dual agent, or any broker at all.
Renters can still hire their own broker. A tenant who chooses to hire an agent to search for them pays that agent. That's their choice, not a cost you can push onto them.

What you can still charge a renter

Charge	Limit
Background / credit check	Up to $20, or the actual cost if lower. Waived if the applicant gives you a check from the last 30 days.
Security deposit	Up to one month's rent, returned within 14 days of move-out.
First month's rent	Allowed.
Broker fee for your agent	Not allowed.

The check and deposit limits come from New York State law, which applied before the FARE Act and still does.

Your listings and leases must disclose every fee

The FARE Act also changed what goes in your ads and your lease paperwork.

Listings: no listing may advertise a broker fee the tenant isn't allowed to pay. Every fee a tenant must pay has to appear clearly and conspicuously in the listing.
Before the lease: you or your agent must give the tenant an itemized written list of every fee payable to you or anyone acting for you, with a description of each.
Signature: the tenant signs that disclosure before signing the lease.
Records: keep the signed disclosure for three years and give the tenant a copy.

Penalties and enforcement

DCWP investigates complaints and issues summonses, which are heard at the city's administrative court (OATH). Violators face fines and can be ordered to refund illegal fees to tenants. Tenants can also sue in civil court.

Under the law, fines can reach $1,000 for a first violation and $2,000 for each repeat violation within two years.

Tenants file complaints through 311 or DCWP's website, usually with screenshots, texts and receipts. A single listing that shows a tenant-paid broker fee is enough to start one.

Keeping leasing costs down

Most NYC listing brokers still charge a full month's rent, or up to 15% of a year's rent, and that fee is now an owner expense. It doesn't have to be that large. Here's how the common fee structures compare.

Apartment	One month's rent	15% of a year's rent	Our flat fee
Brooklyn 1BR at $1,800/mo	$1,800	$3,240	$995
Brooklyn 2BR at $3,000/mo	$3,000	$5,400	$1,895
Manhattan 1BR at $4,500/mo	$4,500	$8,100	$2,595
Manhattan 2BR at $7,000/mo	$7,000	$12,600	$2,995

On a $3,000 Brooklyn apartment, a flat fee saves you $1,105 to $3,505 per lease compared with a traditional broker.

Two other ways owners are keeping the cost in check:

Fewer turnovers. Every renewal is a year without a leasing fee, so keeping good tenants is now worth more than before.
Budgeting it into the rent. For free-market apartments, many owners now factor leasing costs into the asking rent. Rent-stabilized rents remain set by the Rent Guidelines Board.

Your options for renting an apartment

Rent it yourself. No broker fee, but you take the photos, write the listing, answer every inquiry, run showings, screen applicants and handle the fee disclosures yourself.
Hire a traditional broker. Full service, at a month's rent or more per lease, now paid by you.
Use flat-fee leasing. The same full service for one set price. With us that means real photos and video of your apartment, listings on StreetEasy and Zillow, every inquiry and showing handled, and a screened, complete application for you to approve. Fees start at $995 in Brooklyn, Queens and Staten Island, and $1,995 in Manhattan.

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FAQ

Can I raise the rent to cover the broker fee?

For a free-market apartment, the FARE Act doesn't set your rent. Rent-stabilized units remain limited by the Rent Guidelines Board. The rent must be the same advertised rent the tenant agrees to, with no separate broker fee added.

Can I ask the tenant to pay my broker if they agree to it?

No. A tenant can't be charged for a broker who represents you, even with their consent.

What if the tenant hired their own broker?

Then the tenant pays their own broker. You still pay yours, if you hired one.

Does this apply to every borough?

Yes. It applies to residential rentals across all five boroughs of New York City.

I signed a broker agreement before June 2025. Does the FARE Act still apply?

Yes. In July 2026 the federal appeals court ruled the law can apply to broker agreements signed before it took effect, so your broker can't collect their fee from your tenant.

Is the FARE Act still being challenged in court?

The Real Estate Board of New York sued to block it. In July 2026 the federal appeals court upheld the law, and it remains in effect.

Sources

This guide is general information, not legal advice. For questions about a specific lease or broker agreement, talk to a real estate attorney.