The Fairness in Apartment Rental Expenses (FARE) Act went into effect on June 11th, 2025. With this new law in place, this does modify the rental process. Here are some big highlights that will be helpful when you are searching for a new apartment.
The FARE Act Origins
- Council Member Chi Ossé introduced the FARE Act back in June of 2023. Before the FARE Act was in place, the tenant would pay the broker fee even if the broker was hired by the landlord.
- The bill ensures that the hiring party, whether tenant or landlord, pays the broker.
- Their intention is to not restrict brokers from collecting their fee. They will still be paid for their services.
- Co-prime sponsor of the Act, Council Member Shaun Abreu, stresses that “Finding an affordable apartment in New York City is a nightmare — and the towering cost of rent is just the beginning.” He goes on to say that “It isn’t fair to ask tenants to assume the costs for a broker they did not hire.”
What this means for Renters
- Brokers who represent landlords cannot charge broker fees to tenants. Landlords who hire brokers to advertise their listings are the ones who would pay the fee.
- Fees such as Background Checks or Credit Checks are not illegal, but must be disclosed prior to signing.
- The FARE Act makes it clear that whoever is the hiring party of the broker, will pay the broker fee.
Key Benefits for Renters
- Ease the financial burden of finding a new apartment. Costs can add up and the FARE Act helps lessen the up front costs associated with finding a new apartment.
- Provides transparency in fees associated with each listing. While it is not illegal for Landlords to charge a fee for all fees such as credit checks, background checks, application fees, etc., they must disclose these fees prior to signing. This level of transparency will allow renters to know how much they will need to pay upfront.
- There is a still an option to hire a broker. Licensed brokers and agents in the city have the neighborhood knowledge and industry insight to help you find apartments that may not be publicly advertised. This option is great for those who are new to the city or want to outsource the apartment matching process to an expert..
How to search on RentHop for No Fee listings
No fee, also known as Owner Pay (OP), listings are advertised available apartments where the landlord has agreed to cover the hired broker’s commission. The tenant is not responsible for paying the Broker fee. We have made it easy for you to identify such listings with two different methods!
To start, select “No Fee” from the RentHop home page. This will get you the best listings where the landlord has agreed to pay the Broker fee!
If you already started a search, no worries! You can refine your search after specifying your preferences to get listings where the landlord has agreed to pay the Broker fee. It’s as simple as that!
Resources for Renters
Here are additional resources for those who want more information on Tenant Rights.
- Read more about the Fairness in Apartment Rental Expenses (FARE) Act.
- If you feel that a broker or landlord is violating the FARE Act, please report to the NYC Department of Consumer and Worker Protection (DCWP) via this form.
- Read more about how to Recognize Income Discrimination.
