New Law Bans Broker Fees on NYC Tenants 🏢🤑

Broker fees for New York City apartments are typically between 10% and 15% of the annual rent. In the last 14 months 2 new tenant protection laws have passed in NYC. In addition to the “Good Cause Eviction” law which was enacted on April 20th, 2024, a new law called the “Fairness in Apartment Rental Expenses (FARE) Act” went in effect on June 11th, 2025. NYC renters could now begin saving thousands in fees by effectively shifting the responsibility of broker fees from tenants to landlords. Ironically, new renters could see inflated rents from landlords who have to pay broker fees.

The “Good Cause Eviction” law protects tenants including (1) prohibiting landlords from evicting tenants unless good cause, and (2) prevents landlords from raising rents more than 8.79% per year, although, landlords can justify a higher increase by demonstrating expenses like significant repairs, increased property taxes, or other justifiable reasons. Note: Condo and co-op buildings are exempt from this law, as well as, other landlords as outlined in the NYC.gov web link below.

2025 The Fairness in Apartment Rental Expenses (FARE) Act
https://www.nyc.gov/site/dca/about/FAQ-Broker-Fees.page

2024 Good Cause Eviction Law
https://www.nyc.gov/content/tenantprotection/pages/good-cause-eviction

Good Cause Law: Calculate your rent increase
https://goodcausenyc.org/rent_calculator