Decision Box
Do I Owe a Broker Fee in NYC?
Under the FARE Act, whoever hires the broker pays the broker. If the landlord’s agent listed the apartment — including on StreetEasy or Zillow — the landlord pays, not you. You only owe a fee if you personally hired your own broker.
The FARE Act ended one of the most notorious costs of renting in New York. Most tenants still don’t fully understand what changed — or how to spot a landlord trying to get around it.
For decades, NYC was one of the only major rental markets in the country where tenants routinely paid the fee for a broker they never hired. A landlord lists an apartment with an agent, that agent shows it to you, and somehow the bill lands on you — for a service you didn’t ask for and the landlord benefited from.
That changed with the Fairness in Apartment Rental Expenses Act (FARE Act), which took effect June 11, 2025. The rule now is simple: whoever hires the broker pays the broker. Here’s what that actually means in practice.
Who Pays the Broker Fee Now
| Scenario | Who Pays |
|---|---|
| Landlord hires a broker to list the apartment | Landlord pays — not you |
| You hire your own broker to search on your behalf | You pay your broker, as agreed |
| Found via StreetEasy/Zillow with landlord’s permission | That broker is legally the landlord’s agent — landlord pays |
If a broker published a listing with the landlord’s consent, they’re legally presumed to be the landlord’s agent — they can’t relabel themselves as “representing the tenant” to get around the law. Claiming to be a tenant’s broker while listing that same unit for the landlord is itself a violation.
Disguised Fees and Red Flags to Watch For
Some landlords and brokers haven’t eliminated the fee — they’ve just renamed it. Watch for:
- “Administrative,” “processing,” or “technology” fees that suspiciously mirror the old broker fee percentage
- “Move-in coordination” or “leasing services” charges for basic tasks with no clear itemization
- Any application, credit, or background check fee above $20 — New York State caps these at $20 total combined
- A fee that “appeared” only after June 2025 and wasn’t charged by that building before
- Being told you must hire a specific broker just to see the unit — explicitly illegal, even with a “dual agent” claim
- Anyone pressuring you to sign quickly before you’ve reviewed every fee line
Violations carry fines up to $1,000 for a first offense and up to $2,000 for each repeat violation within two years — on top of any money the landlord or broker has to return to you.
Enforcement is real but slow: in the law’s first year, DCWP received more than 2,000 complaints, issued 74 summonses alleging 100 violations, and recovered roughly $27,000 in penalties from 33 brokers — with about $15,000 refunded directly to tenants. The real estate industry’s lawsuit trying to block the law was rejected by a federal appeals court in July 2026, so this isn’t a temporary rule.
What Must Be Disclosed Before You Sign
Every listing now has to clearly disclose all fees a prospective tenant would owe — in the listing itself, not buried in paperwork at signing. Beyond that, landlords or their agents must give you a signed, itemized written disclosure of every fee before you sign anything. If someone’s rushing you to sign without that disclosure, that’s a violation on its own, regardless of what the fees turn out to be.
If You’re Charged Illegally
- File a complaint with DCWP (NYC’s Department of Consumer and Worker Protection) through their online portal at nyc.gov/consumers, or call 311.
- DCWP’s Consumer Services Team reaches out and works with you and the landlord/broker to try to recover the money.
- No response in two weeks? Follow up with your local City Council member’s office.
- The law also creates a private right to sue in civil court if you’d rather go that route, or consult a tenant rights attorney if you’ve already paid a fee that looks illegal.
You don’t need to be actively renting to report a violation. If you see a listing online that’s clearly breaking the FARE Act, you’re encouraged to report it even if you never applied.
Bottom Line
Know the Rule Before You Walk Into a Showing
If you didn’t hire the broker, you don’t pay the broker. Any fee above $20 for application or processing is a red flag. All fees must be disclosed on the listing before you sign. Most landlords trying to skirt this law are betting that you don’t know it.
Get the Full Breakdown
The complete guide covers exact scripts for pushing back on illegal fees, what’s still legal to charge you, and step-by-step instructions for filing a complaint that actually gets your money back.
Get the NYC No-Broker-Fee Guide
This post is for informational purposes only and does not constitute legal advice. For questions about your specific situation, contact DCWP directly or consult a licensed attorney.