Free of the broker fees? Think again! In 2024, a new bill was signed into law to abolish broker fees for potential tenants. Known as the Fairness in Apartment Rental Expenses Act (FARE), city officials have now squandered the ruling that was supposed to go into effect in June 2025.
Though FARE was a saving grace for many NYC renters, the Real Estate Board of New York (REBNY) believed the law was in violation of free speech and constitutional contract rights.
Now, broker fees will not only return, but with a vengeance. All rental properties and units in NYC will require tenants to pay a broker fee equivalent to 20% of their annual rent. To put this in perspective, if someone pays an annual rent of $36,000 ($3,000/month), they will be mandated to pay a $7,200 broker fee.
Prior to the introduction of FARE, broker fees in NYC were typically anywhere from 8%-15% of the annual rent, costing anywhere between one to two months rent in total. After the April 1st, 2025 ruling, the 20% mandate will cost renters more than ever before, bringing back “the era of the captive tenant,” a phrase Council Member Chi Ossé once used when FARE was signed into law.
To handle NYC’s low vacancy rates, a new app will be rolled out in the next few months called FeeFighter. Here, tenants can create an account to ultimately bid on broker fees—an argument those who were opposed to FARE claim will make the renter experience more exciting. Some believe landlords might soon implement an air fee, charging tenants for the amount airflow in any given unit. Plus, they may even charge you a fools fee for believing us!