Since June 11, 2025, the FARE Act has shifted an estimated $500 million in annual broker fees from tenants to landlords in New York City. Nearly a full year in, the rental market looks fundamentally different. As a broker who has worked both sides of NYC leasing across Manhattan and Brooklyn for over two decades, I have seen the real impact on listing volume, landlord pricing, and tenant expectations firsthand.
By May 2026, DCWP has issued written guidance on two-rent advertising (banned), self-listing landlord exemptions (narrowed), and lease addenda that try to reassign fees back to tenants (void). Open-house turnout on listings I run in Washington Heights and Inwood is roughly 30 to 40 percent higher than the same week in 2025, which is the clearest demand signal I can offer: tenants who used to skip showings over fee anxiety are now applying.
Key Changes Under the FARE Act
- Landlord-Hired Brokers: When a landlord hires a broker, the landlord must pay the broker fee, not the tenant
- Tenant Choice: Tenants can still hire their own broker and pay that fee if they choose
- Fee Disclosure: All listings must clearly disclose all fees upfront
- Itemized Costs: Landlords must provide a written itemized list of all fees before lease signing
Market Impact: What We're Seeing
The market has adapted in several ways:
- Rental Prices: Some landlords have adjusted asking rents to offset broker costs, though competition keeps this in check
- Direct Listings: More landlords are listing directly without brokers
- Tenant Representation: Tenants are increasingly seeking their own representation, especially in competitive markets
- Transparency: Overall fee transparency has improved significantly
What This Means for Renters
If you're searching for an apartment in NYC:
- Ask upfront who hired the broker and who pays the fee
- Request itemized fee documentation before signing anything
- Know that you can hire your own broker to represent your interests
- File a complaint with NYC DCWP if you experience violations
Active Listings
Live data · Updated every 15 min · Source: REBNY RLS
17 W 17TH Street #6
Flatiron
545 W 20TH Street #5B
Chelsea
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
Looking Ahead
As the market continues to adjust, we expect further clarification from regulators and continued evolution of how rental transactions are structured. The goal remains the same: fairer, more transparent rental transactions for everyone.
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