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 With Broker Fees in NYC?
The FARE Act changed the default payment rule for rental brokers in New York City.
The FARE Act rule in one sentence
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.
Effective date: June 11, 2025.
Who Pays the Broker Fee Now?
Most renter confusion now comes down to one question: who actually hired the broker?
Landlord hired the broker
- 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
- 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 Renters Still Might Pay
The FARE Act did not make all apartment hunting free. It narrowed when renters can be charged.
You hire a tenant broker to represent you directly.
You agree to another lawful fee that is clearly disclosed and allowed by law.
You are evaluating a listing structure where the broker is truly acting on your behalf rather than the landlord’s.
What Fees Are Still Legal?
Broker-fee reform did not change every upfront rental cost in New York.
| 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 | Generally capped at $20. | Check for bundled screening charges above the cap. |
| Security deposit | Generally limited to one month of rent. | Confirm the deposit amount and return terms before signing. |
What To Do if a Listing Still Tries To Charge You
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 or background fees above the usual legal cap
- Vague admin or processing fees replacing 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
How To Find No-Fee Apartments in NYC
The best no-fee strategy is to reduce unnecessary middlemen and focus 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.”