The FARE Act is New York City's broker-fee reform. It passed in late 2024 and took effect on June 11, 2025.

The core rule is simple: whoever hires the broker pays.

Practically, that ends the long-standing NYC practice where a landlord's broker charged the tenant. The law also requires upfront disclosure of any tenant fees in listings/leases and was intended to reduce move-in costs citywide.

Not if you hired a real estate rental broker to advertise your listing. Under the law, a broker who posts a listing is legally presumed to be working for the landlord. The tenant can't be charged unless they explicitly hired that broker themselves. In short, if the listing is published through your real estate agent, you (the landlord) pay the commission; the tenant does not. 

NYC rental broker fees have traditionally been about one month's rent or 12–15% of annual rent. That's the commission the listing owners/landlords should now expect to budget when a real estate broker is hired.

For context, StreetEasy's analysis estimated average renter move-in costs are reduced from ~$12,942 to ~$7,537 now that the broker's fee is no longer paid by the tenant. 

Enforcement sits with NYC's Department of Consumer and Worker Protection (DCWP). If a tenant is charged an illegal broker fee, DCWP can levy fines of $750 for a first offense and $2,000 for repeat offenses.

DCWP can also require refunds of illegal fees to tenants. Tenants are encouraged to report violations, and the city monitors listings, so paper trails matter.

Some owners are raising their asking rents, but market constraints are something to consider.

StreetEasy's chief economist found units that flipped to "no-fee" saw rents rise ~5.3% vs. 4.6% in comparable fee units. Pushing too far can shrink your qualified pool under NYC's common 40× income screen, risking longer vacancies.

In other words, modest increases may make sense, but large jumps often won't.

Some smaller owners may try self-listing or more private channels to avoid hiring brokers. But early reporting and expert commentary suggest that with low vacancy, many owners still rely on real estate brokers to move units efficiently.

StreetEasy previously found that 80%+ of "no-fee" units were still handled by brokers, indicating owners valued professional leasing even when paying the commission. Pulling listings offline can reduce demand and slow leasing, so weigh speed-to-lease against savings.

The law is in force. The real-estate industry (including REBNY) sued to block it, but a preliminary injunction was denied in June 2025, allowing enforcement to start on schedule while litigation continues.

That means near-term reversal is unlikely, though the case is ongoing. AM Residential Real Estate tracks updates and can advise if anything changes.