The FARE Act, NYC’s contentious legislation on broker fees, officially go into effect on Wednesday, June 11th.
Council member Chi Ossé is the brains behind the law, which requires the hiring party, not the potential renter, to be responsible for broker fees. Under the FARE Act — formally titled the Fairness in Apartment Rental Expenses (FARE) Act — if tenants are expected to cover any additional charges, property managers and brokers are required to disclose the information.
Since the bill passed in the City Council in November 2024, it’s been a highly-debated matter in the NYC rental market, but one that is welcome for those on the apartment hunt.
“We just voted to kill forced broker fees in New York City,” Council member Chi Ossé said on Instagram last November. “Tenants are done paying fees to brokers they never wanted, nor hired, for apartments they found themselves.”
Fare Act NYC — StreetEasy predicts what’s next
Though June 11th is looming, the Real Estate Board of New York is still pushing back, hoping to pause the law. Despite the hectic back-and-forth, experts at StreetEasy made a few predictions about the rental market going forward, and those who are looking for a new place to call home should take notes.
The company’s economist, Kenny Lee, did a deep dive to dissect potential developments once the law goes into effect, and there is a glimmer of hope: New Yorkers were concerned this new change would make monthly rent more expensive, but Lee believes costs will remain relatively stable. He stated,
Despite the slow transition to the new norm, the properties forgoing a broker fee ahead of the FARE Act’s implementation did not increase rents beyond the broader market trend.
Additionally, the FARE Act will lower the costs that come with signing a lease. Lee further stated,
Once the FARE Act takes effect, the average upfront cost for rentals currently charging a broker fee will fall by 41.8% to $7,537. While property managers are allowed to charge other miscellaneous fees, the new law will ensure that renters clearly understand any fees they will be asked to pay — with no surprises later on.
Lee also believes that property managers will continue to absorb the bulk of the costs, and brokers and property managers will likely proceed similarly to the way they have before the FARE Act. To read StreetEasy’s findings in full, head online.
If the apartment search still feels a little daunting (and understandably so), check out our expert-backed tips for winning an affordable housing lottery and utilize new tools, like NYC’s first-ever rent stabilized alert system.