FARE Act NYC: Who Pays the Broker Fee After June 11, 2025
6 min read · Updated 2026-08-13
NYC FARE Act (Local Law 119 of 2024) in force since June 11, 2025: who pays the rental broker fee, required fee disclosures, and how to file a complaint.
What the FARE Act Changed
What is the FARE Act in NYC?
The FARE Act (Fairness in Apartment Rental Expenses Act, Local Law 119 of 2024) is a New York City law that took effect June 11, 2025 and is enforced by the Department of Consumer and Worker Protection (DCWP). Its core rule is simple: whoever hires the rental broker pays that broker. A landlord who engages a broker to list and rent an apartment can no longer pass that broker's commission to the tenant. The law also requires all tenant-payable fees to be disclosed in listings and itemized in a written agreement before the lease is signed. It applies to residential rentals across NYC.
Who pays the broker fee under the FARE Act?
The party that hires the broker pays the broker. If a landlord retains a broker to market and lease an apartment, the landlord pays that broker's fee — it cannot be shifted onto the incoming tenant. If a tenant independently hires their own broker to help find an apartment, that tenant may still be charged for the service they requested. The distinction is about who engaged the agent. The most common change renters notice is that fees previously charged as a "broker fee" on landlord-listed apartments are now the landlord's responsibility under Local Law 119 of 2024.
When did the FARE Act take effect?
The FARE Act has been in force since June 11, 2025. Any residential rental listing published or lease signed on or after that date must comply. That means landlord-hired broker commissions cannot be charged to tenants, and every fee a tenant is expected to pay must be disclosed up front in the listing and itemized in writing before signing. Because the law is relatively new, some listings and agreements from before the effective date operated under the old rules; for any current apartment search in NYC, the FARE Act protections apply.
Can a landlord still require me to use their broker?
No. Under the FARE Act, a landlord cannot condition the rental of an apartment on the tenant using — or paying — the landlord's broker. A landlord is free to use a broker to list a unit, but the cost of that broker is the landlord's to bear, and the tenant cannot be forced to hire that same agent or cover their commission. If a landlord or agent tells you that renting a landlord-listed apartment requires paying "their" broker's fee, that arrangement conflicts with Local Law 119 of 2024. You can decline and, if pressured, file a complaint with DCWP.
Fee Disclosure and Hidden Charges
What fees must be disclosed to a renter in NYC?
The FARE Act requires that every fee a prospective tenant is expected to pay be disclosed in the apartment listing and then itemized in a written agreement provided before the lease is signed. That includes application fees, credit or background check charges, move-in fees, and any broker fee the tenant is legitimately responsible for (for example, when the tenant hired their own broker). The purpose is to eliminate surprise charges that appear only at signing. If a fee was never disclosed in the listing, it generally cannot be sprung on you at the lease table under Local Law 119 of 2024.
Are "no fee" apartments now more common in NYC?
Yes. Because landlords can no longer pass their broker's commission to tenants, many landlord-listed apartments that once carried a broker fee now appear as "no fee" rentals. The cost of a landlord-hired broker sits with the landlord. Renters should still read listings and written agreements carefully: watch for the same commission relabeled as an inflated "move-in fee," "amenity fee," or unexplained surcharge. Disguised fees that route the landlord's broker cost to the tenant conflict with the FARE Act, and undisclosed charges are not enforceable simply because they carry a different name.
What is a disguised broker fee and is it legal?
A disguised broker fee is a charge that repackages a landlord-hired broker's commission under a different label — such as an unusually large "move-in fee," "administrative fee," or "amenity fee" — to shift it onto the tenant. This practice conflicts with the FARE Act, which requires the party that hires the broker to pay them and requires honest, itemized disclosure of any tenant-payable fees. If you see a vaguely described lump-sum charge that roughly equals a month's rent or a typical commission, ask for a written itemization. Undisclosed or mislabeled charges designed to evade Local Law 119 of 2024 can support a DCWP complaint.
Does the FARE Act cover application and background check fees?
The FARE Act's disclosure requirements reach the fees a tenant is expected to pay, so application and background-check charges must be disclosed in the listing and itemized before signing. Note that separate New York State law already caps tenant application fees (including background and credit checks) at a low statutory amount and limits certain other move-in charges. The FARE Act layers a transparency requirement on top: even a legally chargeable fee must be shown up front rather than revealed at the lease table. Review the DCWP FAQ for the current list of what may and may not be charged.
Enforcement and Complaints
How do I file a FARE Act complaint in NYC?
The FARE Act is enforced by the Department of Consumer and Worker Protection (DCWP). If a landlord or broker tries to charge you their broker fee, conditions a lease on using their broker, or hits you with undisclosed fees at signing, you can file a complaint through NYC311 (call 311 or use portal.311.nyc.gov) or DCWP's online complaint system. Keep the listing, all written communications, the itemized fee agreement, and receipts. Documentation showing the fee was never disclosed, or that a landlord-hired broker's commission was charged to you, strengthens your complaint.
What are the penalties for violating the FARE Act?
Violations of the FARE Act can result in civil penalties assessed by the Department of Consumer and Worker Protection (DCWP) against landlords or brokers who improperly charge tenants or fail to disclose fees. The law also creates a private right of action, meaning a tenant who was wrongly charged can pursue the matter directly rather than relying solely on the agency. For current penalty amounts and the exact enforcement process, consult DCWP's official Broker Fee FAQ, which the agency updates as it administers Local Law 119 of 2024.
Can I get my money back if I was wrongly charged a broker fee?
If a landlord-hired broker's fee was improperly charged to you after June 11, 2025, you may have grounds to recover it. The FARE Act creates a private right of action, and DCWP can pursue enforcement against the landlord or broker. Start by requesting a refund in writing, citing that the fee violates Local Law 119 of 2024. If that fails, file a DCWP complaint through NYC311 and preserve your evidence — the listing, the signed fee itemization, and payment receipts. Because remedies can involve civil penalties and restitution, keeping thorough records is essential.
Does the FARE Act apply to apartments outside Manhattan?
Yes. The FARE Act is a citywide law covering residential rentals throughout New York City — all five boroughs, not just Manhattan. Any landlord-listed apartment in Brooklyn, Queens, the Bronx, or Staten Island is subject to the same rule that the party hiring the broker pays them, along with the disclosure and itemization requirements. Local market customs varied borough to borough before June 11, 2025, but Local Law 119 of 2024 sets a single standard citywide. If you encounter a landlord-hired broker fee charged to a tenant anywhere in NYC, the same protections and complaint routes apply.