Renters no longer pay broker fees under bill passed by City Council
NEW YORK (PIX11) – The New York City Council passed a bill Wednesday to make renting an apartment a little easier.
The bill, known as the FARE Act, requires landlords to pay the fee when they hire a real estate broker to market their properties. It also includes when a broker publishes a listing with the landlord’s permission.
If there are any fees that a tenant must pay, the amount must be disclosed in the listing and rental agreements. Landlords who violate the new rules will face penalties.
If a tenant hires a real estate broker to help them find a living space, they’re still responsible for those fees.
Broker fees can cost an average of 10 to 12 percent of a year’s rent, while upfront fees cost an average of almost $13,000, according to a StreetEasy study.
The FARE Act, penned by City Council member Chi A. Ossé, received support from 42 council members, enough for a veto-proof majority. It now heads to City Hall for New York City Mayor Eric Adams to sign into law.
“If you pass the cost onto the small property owners, nothing in that law stops them from building that into their rent,” the mayor said at a press conference on Tuesday.
PIX11 News asked Ossé about that possibility, and he noted that most tenants would rather not pay the fee upfront.
“The average cost of first-time fees for moving into an apartment is over $10,000. Eliminating that cost and splitting it up over 12 or 24 months allows people to move into new apartments,” the council member said.
Dominique Jack is a digital content producer from Brooklyn with more than five years of experience covering news. She joined PIX11 in 2024. More of her work can be found here.