On June 11, 2025, the long-debated FARE Act officially went into effect in New York. Designed to reduce upfront rental costs and increase transparency around leasing fees, the law shifts the burden of broker fees away from tenants—unless the tenant explicitly hires the broker. It also requires that all fees be disclosed before a lease is signed.
While this sounds like a win for affordability, the reality on the ground is more complicated. The FARE Act, while well-intentioned, could ultimately leave renters less protected and facing higher long-term costs—all while reducing access to expert guidance during one of the most significant financial decisions many people make each year.
Short-Term Relief: Reduced Upfront Costs
There is no question that renters see immediate financial relief under the FARE Act. According to early data:
Upfront move-in costs have dropped by approximately 40%, from nearly $13,000 to around $7,500.
Renters no longer pay broker fees when the broker was engaged by the landlord.
New York now aligns with many other U.S. cities, where the party who hires the broker is the one who pays.
This change can make a critical difference for first-time renters, students, or anyone without a large cash reserve. However, this short-term gain may come with unintended long-term consequences.
Long-Term Cost: The Broker Fee Isn’t Gone—It’s Just Hidden
Rather than absorbing broker fees, many landlords are folding them into the monthly rent. The broker’s fee may not appear on a lease, but it hasn’t disappeared—it’s just less visible.
Rents on many “no-fee” listings have quietly increased by several hundred dollars per month.
Tenants planning to stay longer than 12 months may ultimately pay more over the course of a lease than they would have under the previous model.
Renters lose visibility into what they’re actually paying for—fees that were once itemized are now blended into the rent total.
This bundling reduces transparency and takes away the ability for renters to question or negotiate individual line items.
The Shrinking Role of Broker Representation
One of the less visible, but more impactful, consequences of the FARE Act is its influence on broker engagement. Since tenants only pay broker fees if they directly hire one, many will opt to go it alone—especially when seeking "no-fee" listings.
But working with a knowledgeable broker often provides:
Lease review and negotiation support, helping renters spot unfavorable clauses.
Access to vetted listings, rather than relying solely on online aggregators.
Guidance around application strategies, documentation, and fee negotiation.
Without this expertise, renters may miss opportunities to protect themselves—particularly in fast-moving or high-demand neighborhoods.
Transparency Isn’t the Same as Education
The FARE Act requires landlords and brokers to disclose all fees before a lease is signed. But disclosure does not equal understanding. Most renters aren’t aware that:
Many fees remain negotiable, including application, pet, and move-in/out charges.
Not all “required” fees are in fact mandatory—especially in buildings with flexible management.
Violations of the law can be reported to the Department of Consumer and Worker Protection (DCWP), but very few renters know how to take action.
In the absence of a broker, most renters lack the confidence or knowledge to ask the right questions or challenge unnecessary charges.
Fees will likely become baked in in the form of higher rents
What Renters Should Do Now
The best defense in this new environment is a proactive and informed approach. Renters should:
Request a full itemized breakdown of all fees before signing anything.
Calculate the full cost of a lease, including rent increases and bundled charges over time.
Retain a broker when appropriate, especially for higher-stakes leases or unfamiliar neighborhoods.
Report noncompliance or misleading practices to DCWP or call 311.
What Landlords Need to Understand
For landlords, the FARE Act creates new expectations around disclosure and pricing strategy. To remain competitive and avoid tenant pushback, landlords should:
Price listings competitively, rather than using rent increases to cover broker fees.
Clearly communicate the value of the apartment, including services like professional staging, flexible move-in dates, or fast approval processes.
Use brokers strategically—they can still add value through marketing, tenant screening, and lease execution.
When positioned thoughtfully, transparency can strengthen trust and reduce friction during negotiations.
Final Thoughts
The FARE Act was created to make renting in New York City more affordable and transparent. It delivers on that promise in part—by lowering upfront costs and clarifying who is responsible for which fees. But without proper education, support, and enforcement, the Act may inadvertently undermine renter protections, lead to higher long-term rent payments, and discourage expert representation at a time when it is most needed.
For renters, understanding the true cost of a lease—and when to involve a professional—will be key to navigating this new landscape successfully. For landlords, maintaining transparency and fairness will not only meet the legal standard but help attract and retain quality tenants in a more competitive market.
The FARE Act is a step forward, but not a solution in itself. Informed decisions, professional advocacy, and smarter negotiations will remain critical tools for both renters and landlords in the post-FARE era.