Unscripted New York · Renter Guide
NYC Broker Fees Are Illegal Now (Mostly).
Here’s What That Means for You.
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, New York City 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.
The Disguised Fees to Watch For
Some landlords and brokers have tried renaming the same charge instead of eliminating it. Watch for:
- “Administrative” or “processing” fees that suspiciously mirror the old broker fee percentage
- “Move-in coordination” or “leasing services” charges for basic tasks with no clear itemization
- Application fees well above $20 — New York State caps credit and background checks at $20 total combined
- Being told you must hire a specific broker just to see the unit — explicitly illegal, even with a “dual agent”
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.
DCWP’s Consumer Services Team reaches out and works with you and the landlord/broker to recover the money.
No response in 2 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.
Bottom line: the FARE Act is real, it’s enforced, and most renters still don’t fully understand it — which means most landlords trying to skirt it are betting on that gap. Knowing the rule is most of the battle.
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 →