Quick guide
Broker fees in NYC changed materially on June 11, 2025. Under the FARE Act, the party who hires the broker pays the broker. For most renters, that means fewer forced broker-fee charges and a clearer path to finding no-fee apartments.
The FARE Act did not ban every broker fee — it changed who has to pay it. This guide explains what NYC renters should expect now, what charges are still legal, and how to spot listings that may still be trying to pass along unlawful fees.
What changed
One rule, in one sentence.
The FARE Act (NYC Local Law 119 of 2024, effective June 11, 2025) changed the default payment rule for rental brokers in New York City.
Effective date
June 11, 2025
If a landlord or listing agent hires a broker to market an apartment, the landlord pays that broker. If a renter hires their own broker to help search, the renter pays that broker. The Act did not eliminate broker fees — it changed who must pay them.
Who pays
One question decides it: who hired the broker?
Most renter confusion comes down to that. Once you know the answer, the fee question follows.
Landlord hired the broker
most common situation
- Landlord pays the broker fee.
- This is the most common situation for ordinary rental listings.
- Renters should not be charged that fee just because they responded to the listing.
Renter hired the broker
tenant's broker scenario
- The renter can still owe a broker fee.
- This usually applies when you choose to use a tenant's broker.
- The key is that the service must be one you actually hired.
When you pay
The FARE Act did not make all apartment hunting free.
It narrowed when renters can be charged. Here are the situations where you can still legitimately owe a fee.
- 01
You hire a tenant broker to represent you directly.
- 02
You agree to another lawful fee that is clearly disclosed and allowed by law.
- 03
You are evaluating a listing structure where the broker is truly acting on your behalf rather than the landlord's.
Legal fees
What fees are still legal?
Broker-fee reform did not change every upfront rental cost in New York. Here's how the three biggest line items stack up after the FARE Act.
| Fee type | General NYC rule | What to check |
|---|---|---|
| Broker fee | Paid by the party who hired the broker. | Ask who engaged the broker and get it in writing. |
| Application fee | For an ordinary rental application, New York Real Property Law Section 238-a bars any fee for the processing, review, or acceptance of the application, other than fees a separate statute or regulation authorizes (such as entrance fees at continuing care, assisted living, adult care, or certain senior residential communities); the only charge a landlord may otherwise collect is for a background and credit check, capped at the actual cost or $20 combined, whichever is less, waived if the applicant provides a copy from the past 30 days, and conditioned on giving the applicant a copy of the check results and the screening provider's receipt or invoice. Co-op share purchases have a separate rule: a cooperative housing corporation may charge a prospective purchaser or shareholder applicant only fees needed to compensate its managing or transfer agent, while background and credit checks remain capped at their actual cost. | Watch for application fees or bundled screening charges above the $20 check cap. |
| Security deposit | New York law caps security deposits at one month's rent for most residential rentals: General Obligations Law Section 7-108 covers most units, and Section 7-107 applies the same one-month cap to rent-stabilized and ETPA-covered units. Rent-controlled units and certain care and retirement communities are excluded from that one-month cap, and seasonal-use units and owner-occupied co-op apartments have separate rules. | Confirm the deposit amount and return terms before signing. |
Red flags
If a listing tries to charge you, protect yourself first.
The best protection is documentation. Get every fee explanation in writing before you pay anything.
Red flags
- Broker fee demanded without a clear explanation of who hired the broker
- Application fees, or background/credit-check charges above the $20 legal cap
- Vague "admin" or "processing" fees that look like they replace banned charges
- Pressure to pay before basic disclosure is provided
Safer process
- Ask who hired the broker and whether the fee is optional
- Request a written fee breakdown before applying
- Compare the listing against current NYC guidance
- Use traceable payment methods and keep copies of all messages
- If you were charged unlawfully, file a complaint with NYC's Department of Consumer and Worker Protection (DCWP), which can issue civil penalties and order restitution
Find no-fee
How to find no-fee apartments.
The best no-fee strategy is reducing unnecessary middlemen and focusing on listing sources where landlord-paid or direct inventory is common.
- Search independently before hiring a tenant broker.
- Prioritize platforms and operators that clearly disclose no-fee inventory.
- Use alerts so you can move quickly on direct listings and new postings.
- Double-check every fee even if the listing is marketed as "no fee."
Related guides
- Calculate whether paying a broker fee is worth it
- Read the complete NYC apartment hunting guide
- Learn how lease takeovers can reduce broker-fee exposure
- Understand Good Cause Eviction and rent-increase protections
- Compare Manhattan rent by neighborhood before paying any fee premium
- Check Williamsburg rent data when weighing no-fee alternatives
Sources
FAQs
Common questions
The key NYC broker fee and FARE Act questions renters ask before they sign.
Under the FARE Act, whoever hires the broker pays the broker. If the landlord hires the broker to market an apartment, the landlord pays. If you hire your own tenant's broker, you pay that broker.