The New York City Council has approved the FARE Act (Int 0360-2024), a new bill that eliminates upfront broker fees for most renters.
Currently, New York is one of the only places in the country where tenants are required to pay these fees, often around 15% of the yearly rent, even when they’ve never met the broker. This has meant an average upfront cost of $13,000 for renters, which includes broker fees, security deposits, and first month’s rent. Under the FARE Act, the responsibility for paying the broker fee will shift to the party that hires the broker—usually the landlord or building manager—unless the tenant specifically hires the broker.
The bill passed with solid support, at 42 votes to 8. Proponents argue it’s common sense that the party hiring the broker should pay for their services, adding that the FARE Act will help make housing more accessible for working- and middle-income renters. However, critics, including the Real Estate Board of New York (REBNY), have raised concerns that the law could lead to higher rents, make it more difficult to find housing, and harm brokers.
