You find a listing you love, do the math on first month's rent and a security deposit, and feel ready to sign. Then comes the line that has shocked NYC renters for decades: a broker fee, often a full month's rent or more, owed to an agent you didn't hire. The FARE Act was written to end that surprise. Here is what changed, who pays now, and how to read a listing so the number you see is the number you pay.
What the FARE Act Is
FARE stands for the Fairness in Apartment Rental Expenses Act, a New York City law that reshapes who pays the broker's commission on a rental. The core idea is simple: the party who hires the broker pays the broker. In most cases that is the landlord, not the tenant. The law is enforced by the city's Department of Consumer and Worker Protection (DCWP). Because rollout details and edge cases are still settling, confirm the current specifics with DCWP or your leasing office before you rely on them.
Who Pays the Broker Fee Now
Under the FARE Act, if a landlord hires a broker to market and lease an apartment, the landlord pays that broker's fee. A tenant cannot be charged for a broker the tenant never engaged. The exception is straightforward: if you hire your own broker to search on your behalf, you and that broker agree on their compensation, and you pay it. The shift mostly targets the old norm where the landlord's listing agent collected a fee from the incoming tenant.
How It Changes Your Move-In Costs
The broker fee was often the single largest line in a New York move-in, sometimes rivaling the rent itself. Removing it from the tenant's side lowers the cash you need on day one. Your upfront costs typically still include first month's rent, a security deposit, and a small application or screening fee. As a rule, New York caps a tenant application fee at $20, though you should confirm exactly what is charged. Income guidelines you will hear about, like the 40-times-annual-rent norm or the roughly 80-times figure for guarantors, are industry conventions, not law. Ask the leasing office at (212) 684-3222 for the exact requirements that apply to you.
What to Verify in a Listing
Read every listing for who holds the agreement. Check a few things before you tour: whether a broker is involved at all, who hired them, and whether any fee is being passed to you. Get the full move-in cost in writing, including deposit, first month, and any application fee. If a listing still shows a tenant-paid broker fee, ask directly why, and cross-check against DCWP's guidance. Listings that route you to the building itself are the easiest to verify, because no third party is adding a charge.
The cleanest way to avoid a surprise fee is to lease straight with the building. At The Anthem, our team walks you through every move-in cost up front, with no tenant-paid broker fee in the picture. Call the leasing office at (212) 684-3222 to review the full numbers and our move-in details, or browse available residences.
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