If you have searched for an apartment in New York City recently, you have probably noticed far more listings advertised as 'no fee' than a few years ago. The reason is the FARE Act — the Fairness in Apartment Rental Expenses Act — which fundamentally changed who pays the broker when you rent. This guide explains what the law actually does, what it means for your wallet, and how to make it work in your favor.
What the FARE Act Actually Does
For decades, New York renters routinely paid a broker fee — often 12 to 15 percent of the annual rent — even when the broker worked for the landlord, not the tenant. On a $3,500-a-month apartment, that single fee could exceed $6,000 on top of first month, last month, and a security deposit. The FARE Act flips the default: the party who hires the broker is the party who pays the broker. In the typical case where a landlord lists an apartment through their own agent, the landlord now owes that agent's fee, not you.
What Landlords Can and Cannot Charge
- They cannot pass a landlord-hired broker's commission on to you as a condition of renting.
- They must disclose any fees you are responsible for, in writing, before you sign.
- They must include broker-fee information in the listing itself.
Importantly, the law does not abolish broker fees entirely. If you choose to hire a broker to find you an apartment, you can still agree to pay that broker. What changed is that you can no longer be forced to pay for a broker you never hired.
What This Means for Your Move-In Costs
Eliminating a landlord-broker fee can cut thousands of dollars off the cost of moving. For many renters it is the difference between affording a place and walking away. But there is a catch worth understanding: some landlords have responded by raising advertised rents to recover the cost over the life of the lease. That makes comparison shopping more important than ever — a slightly higher 'no fee' rent can still be far cheaper over a year than a lower rent plus a 15 percent fee.
How to Take Advantage of the FARE Act
- Filter for no-fee listings, but always do the full-year math including any rent increase.
- Ask, in writing, exactly which fees you are responsible for before applying.
- Move fast — genuinely no-fee apartments in good neighborhoods get claimed within hours.
That last point is where most renters lose out. The best no-fee apartments are gone before they finish browsing. AptAlert NYC scans Craigslist, StreetEasy, and LeaseBreak continuously and sends you an instant alert the moment a listing matches your search — including a no-fee-only filter — so you can be first in line instead of refreshing all day. Set up your free search at aptalertnyc.com.
The Bottom Line
The FARE Act is one of the most significant wins for NYC renters in a generation. Used well — with honest full-year math and fast, automated alerts — it can save you thousands and make the search dramatically less stressful. Know your rights, get your costs in writing, and be the first to know when the right apartment hits the market.