What is the FARE Act?

The Fairness in Apartment Rental Expenses (FARE) Act, Local Law 119 of 2024, is a New York City law in effect since June 11, 2025. It stops landlords from passing their brokers' fees on to tenants, and it requires landlords to disclose every fee a tenant must pay before the tenant signs a lease.

Who pays the broker fee in NYC now?

The party who hired the broker. When a landlord or its management company hires a broker to list an apartment, the landlord pays. A tenant pays a broker only if the tenant chose to hire that broker.

Can I still hire my own broker?

Yes. The FARE Act doesn't stop you from hiring a broker to search for you, and in that case you pay the fee you agree to. What's banned is making you hire or pay a broker as a condition of renting a specific apartment.

What fees can a landlord still charge when I rent?

A landlord can charge a background or credit check fee of no more than $20 (or the actual cost, if lower), a security deposit of up to one month's rent, and the first month's rent. Every fee must be disclosed in the listing and in an itemized written disclosure you sign before the lease.

What should I do if an agent asks me to pay a broker fee?

Ask who hired them and ask for the itemized written fee disclosure. If the agent represents the landlord or published the listing, their fee can't be charged to you. Keep the listing, messages, and any receipts, and file a complaint with the Department of Consumer and Worker Protection (DCWP) online or by calling 311.

Can I get an illegal broker fee refunded?

Possibly. If DCWP finds a violation, the landlord or agent can be fined and ordered to refund illegal fees. The law also lets tenants sue in civil court. A fee obligation that arose before June 11, 2025 may be treated differently, depending on the circumstances.

Is the FARE Act still in effect after the court challenge?

Yes. A federal judge refused to block the law before it took effect in June 2025, and in July 2026 the U.S. Court of Appeals for the Second Circuit upheld it. One claim about older listing contracts was still pending in the lower court, but the law applies to rentals today.

What is the FARE Act?

The Fairness in Apartment Rental Expenses (FARE) Act, Local Law 119 of 2024, is a New York City law in effect since June 11, 2025. It stops landlords from passing their brokers' fees on to tenants, and it requires landlords to disclose every fee a tenant must pay before the tenant signs a lease.

Who pays the broker fee in NYC now?

The party who hired the broker. When a landlord or its management company hires a broker to list an apartment, the landlord pays. A tenant pays a broker only if the tenant chose to hire that broker.

Can I still hire my own broker?

Yes. The FARE Act doesn't stop you from hiring a broker to search for you, and in that case you pay the fee you agree to. What's banned is making you hire or pay a broker as a condition of renting a specific apartment.

What fees can a landlord still charge when I rent?

A landlord can charge a background or credit check fee of no more than $20 (or the actual cost, if lower), a security deposit of up to one month's rent, and the first month's rent. Every fee must be disclosed in the listing and in an itemized written disclosure you sign before the lease.

What should I do if an agent asks me to pay a broker fee?

Ask who hired them and ask for the itemized written fee disclosure. If the agent represents the landlord or published the listing, their fee can't be charged to you. Keep the listing, messages, and any receipts, and file a complaint with the Department of Consumer and Worker Protection (DCWP) online or by calling 311.

Can I get an illegal broker fee refunded?

Possibly. If DCWP finds a violation, the landlord or agent can be fined and ordered to refund illegal fees. The law also lets tenants sue in civil court. A fee obligation that arose before June 11, 2025 may be treated differently, depending on the circumstances.

Is the FARE Act still in effect after the court challenge?

Yes. A federal judge refused to block the law before it took effect in June 2025, and in July 2026 the U.S. Court of Appeals for the Second Circuit upheld it. One claim about older listing contracts was still pending in the lower court, but the law applies to rentals today.

Do you have to pay a broker fee when renting in NYC?

By the Openigloo team

Published Jun 24, 2026Updated Oct 23, 2026

Based on Openigloo listings and renter reviews. How we rate buildings

Do You Pay a Broker Fee in NYC? The FARE Act Explained

Key takeaways

Since June 11, 2025, whoever hires the broker pays.
A landlord's or listing agent's fee can't be passed to you.
No one can make you hire a broker to rent an apartment.
All fees must be disclosed in the listing and in writing before you sign.
Credit or background check fees are capped at $20; deposits at one month's rent.
Report illegal broker fees to DCWP online or through 311.

Usually, no. Since June 11, 2025, New York City's FARE Act (Fairness in Apartment Rental Expenses Act, Local Law 119 of 2024) has required whoever hires a real estate broker to pay that broker. When a landlord hires a broker to list and rent an apartment, the landlord pays the fee, not the tenant. Before the law, renters were often asked to pay the landlord's broker up to 15% of a year's rent. On the NYC median asking rent in Openigloo's listings data ($4,990 a month, June 2026), that would be about $8,980 on top of the deposit and first month's rent. This guide explains who pays the broker now, which move-in fees landlords can still charge, the mistakes renters make, and what to do if someone asks you to pay a fee the law doesn't allow.

Short answer

No, not if the broker works for the landlord. Under the FARE Act, a landlord's agent, including the listing agent who advertises the apartment, can't charge the tenant a fee. The city presumes that an agent who publishes a listing does so with the landlord's permission, so in practice the agent on the listing works for the landlord.

You only pay a broker if you choose to hire your own broker to search for you. Nobody can make you hire a broker, or a particular broker, as a condition of renting an apartment.

The law has been in effect since June 11, 2025. Federal courts have refused to block it, and in July 2026 the U.S. Court of Appeals for the Second Circuit upheld it against the real estate industry's challenge.

The details

Who pays: the party who hires the broker. If the landlord or management company hires a broker to market the apartment, the broker's fee is the landlord's cost. A landlord is also liable if its agent, or the listing agent, charges a tenant a fee.

Disclosure: every listing must show, clearly and conspicuously, all fees a tenant has to pay to rent the apartment, and a listing can't include an unlawful broker fee. Before you sign a lease, the landlord or its agent must give you an itemized written disclosure of every fee you will pay. You sign it, you get a copy, and the landlord must keep it for three years.

What you can still be charged: state law separately limits move-in costs. A landlord can charge for a background or credit check, but no more than the actual cost or $20, whichever is less, and a security deposit can't be more than one month's rent. There's no cap on asking rents for market-rate apartments, so some landlords build broker costs into the rent. Compare the total cost of each apartment, not only whether it's labeled no-fee.

Enforcement: the Department of Consumer and Worker Protection (DCWP) investigates complaints. Violations can lead to civil penalties and an order to refund illegal fees, and tenants can also sue in civil court.

What renters often get wrong

Assuming a listing marked "fee" means you have to pay it. If the broker on the listing works for the landlord, which the law presumes for listing agents, that fee can't be passed to you. Ask the agent directly who hired them before you apply.

Believing you have to sign with a broker to see an apartment. A broker can't require you to hire them, or any broker, to view or rent a unit. Agreeing to pay a broker is only your choice when you hire one to search for you.

Thinking the law bans every fee. You can still be charged a background or credit check fee of up to $20, a security deposit of up to one month's rent, and first month's rent. If you choose to hire your own broker, you pay that broker under the agreement you sign.

Paying first and asking later. Get the itemized fee disclosure before you sign anything. It's easier to refuse an unlawful fee than to get it refunded.

Bottom line

In NYC today, you shouldn't pay a broker fee to rent an apartment unless you hired that broker yourself. The landlord pays its own broker, and every fee you owe must be listed in the ad and in a written disclosure you sign before the lease.

If an agent asks you for a broker fee for a landlord's listing, ask who hired them, ask for the written fee disclosure, and keep copies of messages and receipts. You can file a complaint with DCWP online or by calling 311, and you may be able to get the fee refunded.

Openigloo shows renter reviews, building data, and listings across NYC, so you can compare apartments on their total cost and on what tenants say about the building and its management.