Renting in New York after the FARE Act: what changed for tenants

For decades, renting in New York City came with a costly rule of thumb: the tenant paid the broker, even when the broker worked for the landlord. A fee of one month’s rent, or around 15 per cent of annual rent, on top of the first month and a security deposit meant moving in could cost a renter well over $10,000 before they unpacked a box.

The Fairness in Apartment Rental Expenses (FARE) Act, in force in New York City since June 2025, changes that. This guide explains what the law does, what it does not do and how tenants can protect themselves in the current market. It is general information and not legal advice.

What the FARE Act says

The core rule is simple: whoever hires the broker pays the broker. When a landlord or their managing agent hires a broker to list an apartment, the landlord pays that broker’s fee. A tenant can no longer be charged a fee for services the landlord’s broker performed, such as showing the apartment, preparing the lease or running applications.

If a tenant hires their own broker to search on their behalf, the tenant can still pay that broker, but the broker must give a written disclosure that explains who they represent and the tenant must agree to the fee in writing. A broker who represents both sides cannot charge the tenant for the landlord’s side.

What tenants should still expect to pay

The Act removes the broker fee in landlord-listed apartments, but other costs remain. State law caps the security deposit at one month’s rent, limits application fees to the actual cost of a background and credit check up to $20 and requires landlords to return deposits within 14 days of the end of the tenancy with an itemised list of deductions.

Expect to pay the first month’s rent in advance, and be wary of any other upfront fees. Moving fees for elevator reservations and building move-in deposits can still apply, particularly in co-ops and condos, and these are usually set by the building rather than the landlord.

• First month’s rent and a security deposit of no more than one month
• Application fee limited to the cost of checks, capped at $20
• Building move-in fee or deposit, where the managing agent requires one
• Renter’s insurance, which many landlords now require as a lease condition

How the market has responded

Landlords did not absorb the cost silently. Many raised asking rents modestly, and some now advertise “no fee” apartments at rents that quietly include the old broker charge. Compare apartments by the total cost over the lease term, not the headline rent. A $4,200 apartment with no upfront broker fee may be cheaper over twelve months than a $4,000 apartment with a $2,000 agency charge, but the arithmetic should be done before you decide.

Listing practices have shifted too. Brokers are more likely to advertise the fee party openly and to publish all-in prices, and online portals have added filters for “landlord pays” listings. If an agent asks you to sign an agreement to pay them a fee for a landlord-listed apartment, ask them to explain in writing how that is compatible with the Act.

Practical advice for renters

Start your search eight weeks before your move date, have your documents ready, which usually means your last two pay stubs, an employment letter, bank statements and a government ID, and be prepared to apply the same day. If you do not meet the usual income threshold of forty times the monthly rent, a guarantor or a guarantee service may help.

Keep every written communication about fees. If you are charged something you believe the Act prohibits, you can file a complaint with the New York City Department of Consumer and Worker Protection. Halvenor’s New York team represents landlords and tenants separately and always discloses which side it is acting for.

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