NYC Council Passes Bill Ending Tenant-Paid Broker Fees

The Fairness in Apartment Rental Expenses Act shifts broker fee responsibility from tenants to landlords, despite industry opposition.

The Fairness in Apartment Rental Expenses (FARE) Act, passed with a veto-proof majority of 42-8, mandates landlords pay broker fees instead of tenants.
New York City is one of the few places where tenants traditionally pay broker fees, which can be as high as 15% of the annual rent.
The bill aims to reduce upfront costs for renters, which currently average nearly $13,000 when including broker fees, first month’s rent, and security deposit.
Opponents, including the Real Estate Board of New York, argue that landlords will likely raise rents to cover these fees, potentially negating tenant savings.
Mayor Eric Adams has expressed concerns about the bill's impact on small property owners and the potential for increased rents, but the council's vote margin makes a veto unlikely.