NYC Passes Landmark Bill to Eliminate Renter-Paid Broker Fees, Lowering Upfront Costs for Tenants

In a decisive move to alleviate financial pressures on renters, the New York City Council passed the Fairness in Apartment Rental Expenses Act (Fare) on Wednesday. The new legislation, approved with a veto-proof majority in the 51-member council, prevents tenants from paying broker fees for agents hired by landlords—a significant change in one of the world’s most expensive rental markets, offering much-needed financial respite to renters.

Landmark Legislation for Renters

The bill, championed by council member Chi Ossé, addresses a long-standing practice that has burdened renters. Upon signing leases, renters typically face upfront fees like application costs, security deposits, and broker commissions. In New York City, the median upfront cost of leasing an apartment has climbed to $10,454, according to StreetEasy, adding strain to renters with limited financial flexibility. The law will take effect 180 days after becoming official.

Brokers’ Fees Shift to Landlords

“New York is sending a strong message: forced broker fees are wrong and must be abolished,” Ossé stated. Under the new law, landlords, not tenants, will be responsible for paying brokers who advertise rentals on their behalf, and rental agreements must disclose any additional tenant fees. Non-compliance will incur fines starting at $1,000.

Mixed Reactions from Leadership

Mayor Eric Adams has raised concerns about the law’s potential impact on small property owners, stressing the importance of balancing tenant relief with landlord support. “We need to get it right,” Adams said on Tuesday, cautioning that “good intentions do not always yield the desired results.” Property owners make up a minority in New York City, where approximately 69% of households rent their homes.

Political Support for Fairness

City Comptroller Brad Lander, a candidate in the 2025 mayoral race, supports the legislation, emphasizing its fairness. “The party that chooses the broker should pay the fee,” Lander commented in June. Assemblyman Zohran Mamdani echoed support, criticizing Adams’s stance as being aligned with real estate donors.

Impact on New York Renters

The passing of Fare marks a groundbreaking victory for renters, setting a precedent for other cities with similar housing dynamics and signaling hope for broader housing reform. As the law takes shape, it is expected to relieve thousands of New Yorkers facing steep housing costs.