NYC Local Law 119, the FARE Act, took effect in June 2025 and eliminated broker fees for tenants on virtually every publicly listed apartment, saving renters an average of $4,000 to $6,000 per lease signing. As a bilingual broker working with landlords and tenants across Washington Heights, Inwood, and Queens, I have structured deals under both the old system and the new one. The law is straightforward once you understand its two core rules: who pays the broker, and what every listing must disclose upfront. Always verify current requirements with a licensed New York real estate attorney or NYC HPD (nyc.gov/hpd) before relying on this article for any transaction.
What Are the Two Main Rules of the FARE Act?
Before the FARE Act (NYC Local Law 119), tenants in NYC routinely paid broker fees of 12 to 15 percent of annual rent, even when the landlord hired the broker. On a $3,000/month apartment, that was up to $5,400 due before moving in. The FARE Act changed two things that every renter needs to know.
Rule 1: Any Online Listing = No Fee
Any apartment posted on any public platform (StreetEasy, Zillow, Craigslist, RLS, any website) is presumed to be represented by the landlord. The tenant owes no broker fee. The landlord pays their broker directly.
Rule 2: Every Fee Must Be Disclosed in the Listing
Every rental posting must disclose all fees a tenant will owe: application fee, keys, carbon monoxide detector charge, move-in or elevator fee, and any other charge at the landlord's direction. Listings cannot say "fee apartment" anymore.
Do Tenants Pay Broker Fees for Online Listings Under the FARE Act?
This is the most important thing to understand about the FARE Act. The law establishes a presumption: any apartment advertised on any online platform is assumed to be listed by, or on behalf of, the landlord. Because the landlord is the one who placed or authorized the listing, the landlord is the one who hired the broker. And under the FARE Act, the party who hires the broker pays the broker.
It does not matter whether the landlord is a large management company or a single-unit owner. It does not matter whether the listing says "fee apartment" or not. If the apartment was advertised on any public platform, the NYC broker fee belongs to the landlord. A landlord cannot lawfully charge a tenant a broker fee on a publicly listed apartment.
When a Tenant Chooses to Hire Their Own Broker
A tenant can choose to hire their own broker at any time. That broker works for the tenant: negotiating with the listing agent, accessing off-market apartments, finding rent-stabilized units before they hit the public market, and preparing a competitive application package. When a tenant hires a broker in this capacity, the tenant pays their broker directly.
This is a choice, not an obligation. The landlord still pays their own listing broker on any publicly listed apartment. The tenant's broker fee is separate and negotiable, generally ranging from one month's rent to 15% of annual rent.
| Scenario | Who Pays the Broker Fee |
|---|---|
| Apartment listed on StreetEasy, Zillow, Craigslist, or RLS | Landlord pays their listing broker |
| Apartment listed on any broker website or MLS | Landlord pays their listing broker |
| Co-op sublet posted online by shareholder | Shareholder (landlord) pays their broker |
| Tenant hires their own broker to represent them | Tenant pays their own broker (negotiable: 1 month to 15% annual rent) |
What Fees Must Landlords Disclose in a Rental Listing?
The FARE Act also added a transparency requirement. Every rental listing must disclose, in a clear and conspicuous manner, all fees a tenant will be required to pay. Note that the FARE Act covers fees, meaning charges beyond rent and security deposit. First month's rent and the security deposit (governed separately under NY Real Property Law, capped at one month for most units) are not "fees" under this statute, but the FARE Act requires every other landlord-directed charge to be stated upfront.
On top of that, listings can no longer carry the label "fee apartment." That designation is prohibited under the FARE Act. Any listing using that language is in violation of the law.
| Item | FARE Act Disclosure Required? | Notes |
|---|---|---|
| Application fee | Yes | Must be disclosed; capped at $20 under separate NYC law |
| Key / fob / intercom fee | Yes | Any charge for keys, mailbox key, fob, or intercom access |
| Carbon monoxide detector fee | Yes | If landlord charges for required CO detector installation |
| Move-in / elevator fee | Yes | Building-imposed move-in fees must be listed upfront |
| Any other required charge | Yes | Any fee at landlord's direction must appear in the listing |
| First month's rent | Not under FARE Act | Rent; governed separately, but should always be in any listing |
| Security deposit | Not under FARE Act | Governed by NY Real Property Law (1 month cap for most units) |
The law also requires landlords to provide a signed written itemization of all fees before the lease is signed, and to retain that document for three years. In practice, I tell every tenant: screenshot the original listing before applying. If the lease or move-in invoice includes charges that were not in that listing, flag it with your attorney before signing anything.
Why Would a Tenant Hire a Broker if the FARE Act Eliminates Fees?
The FARE Act does not eliminate the value of having a broker in your corner. It just clarifies who pays for what. When you hire a tenant's broker, you are paying for representation: someone negotiating with the listing agent on your behalf, preparing a competitive application, and getting you in front of inventory before it goes public.
What a Tenant's Broker Provides
- Access to off-market apartments not yet publicly listed
- Rent-stabilized units and co-op sublets before they hit StreetEasy
- Application preparation and board package support
- Negotiation with listing agents on price, lease terms, and concessions
- Guidance on what to look for in a lease before signing
What You Pay
Tenant broker fees are negotiable. The range is generally:
- Low end: 1 month's rent
- Standard: 12-15% of annual rent (about 1.4-1.8 months)
- Negotiable based on the market, the apartment, and the broker
This is separate from any fee the landlord pays their own listing broker.
What "No Fee" Actually Means on Your Total Move-In Cost
A "no fee" label means the tenant pays no NYC broker fee. It does not mean the landlord has no broker. The landlord pays their broker directly, and some landlords factor that cost into the asking rent. On a $3,000/month apartment where the landlord pays a 15% annual broker fee ($5,400), the asking rent may be set slightly higher to offset that expense over the lease term.
Always calculate total 12-month cost (12 x monthly rent + security + any disclosed fees) rather than comparing monthly rents in isolation.
What to Do If a Landlord Violates the FARE Act
The FARE Act is enforced by NYC HPD. If a landlord or broker attempts to charge a tenant a broker fee on a publicly listed apartment, or collects move-in fees that were not disclosed in the listing, the tenant can file a complaint at nyc.gov/hpd. Civil penalties apply to violations. For broader information on your rights, see the NYC renter rights guide and the Washington Heights rental market guide for neighborhood-level context on how the law is playing out in Upper Manhattan. Tenants in Queens can refer to the Queens rental guide for borough-specific data.
NYC Broker Fee FAQ
Does the FARE Act apply to all NYC rentals?
Yes. The FARE Act (NYC Local Law 119) applies to residential rental transactions citywide. It covers market-rate and rent-stabilized apartments, co-op sublets, and condo rentals. Any publicly listed rental is a no-fee rental for the tenant.
Can a listing still say "fee apartment"?
No. The FARE Act prohibits listings from using "fee apartment" language. That designation is no longer lawful. Any listing still carrying that label is in violation of NYC Local Law 119. If you see it, the landlord cannot legally collect a broker fee from you on that apartment.
What is the typical broker fee range when a tenant hires their own broker?
Tenant broker fees are negotiable. The range is generally one month's rent on the low end to 15% of annual rent (about 1.8 months) at the top. On a $3,000/month apartment, that is roughly $3,000 to $5,400. The amount depends on the market, the apartment, and what is negotiated between the tenant and their broker.
Are landlords raising rents to offset broker fees?
This is more of a market shift than a legal question. Landlords who now absorb broker fees may factor that cost into their asking rent. For market-rate apartments, there is no restriction on how a landlord sets their asking price. Rent-stabilized units are subject to legal regulated rent limits regardless of broker arrangements. Over time, the market will determine how broker costs get priced into rents versus absorbed by landlords.
Does the FARE Act affect buying or selling a home in NYC?
No. The FARE Act applies only to rental transactions. Broker commission arrangements for purchases and sales are governed by separate rules and individual representation agreements. If you are buying, see our NYC buyer guide for purchase transaction costs.
The FARE Act shifted an estimated $500 million per year in NYC broker fees from tenants to landlords. If you have questions about whether a broker fee or move-in charge is lawful on a specific apartment, call (917) 416-7433 or verify at nyc.gov/hpd before signing anything.
Currently Available: Exclusive Rental Listing
Manhattan · Near Penn Station
495 Ninth Avenue #2C
FARE Act Compliant: All Move-In Costs Disclosed
Total move-in: $5,920 · No broker fee charged to tenant
Milton Coste
Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10401274378 · 360 Madison Avenue, 9th Floor, NY 10017
Equal Housing Opportunity. We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. Milton Coste and Keller Williams NYC are committed to full compliance with the Federal Fair Housing Act (42 U.S.C. §§ 3601–3619), the New York State Human Rights Law (Executive Law, Article 15), and the New York City Human Rights Law (Title 8, NYC Administrative Code).
MLS & Listing Data Disclaimer: This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. ©2026 The Real Estate Board of New York, Inc. All rights reserved. Listing information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listing data sourced from REBNY RLS and OneKey MLS. Listing Courtesy of Keller Williams NYC.
Financial & Market Data Disclaimer: All financial figures, market statistics, price estimates, and rental rates are sourced from StreetEasy Market Reports and provided for informational purposes only. Market conditions change frequently. This content does not constitute financial, tax, investment, or legal advice. Consult a licensed financial advisor, CPA, or attorney before making financial decisions. Published in accordance with 19 NYCRR Part 175 (NY DOS Real Estate Broker Advertising Regulations). Milton Coste operates as a Licensed Real Estate Associate Broker under the supervision of Keller Williams NYC.
Content published: February 2026 · Milton Coste · Keller Williams NYC · License No. 10401274378
