On June 11, 2025, New York City witnessed a major shift in its housing policy landscape as the Fair Access to Rent Equity (FARE) Act officially took effect. Designed to curb the financial hurdles renters face when signing leases, the legislation places the responsibility of paying broker fees squarely on landlords in most residential leasing transactions. This move seeks to increase affordability and accessibility for renters across the city’s often unforgiving housing market.
A Long-Awaited Reform for Renters
Historically, broker fees in New York City have been a considerable financial burden for tenants, with charges often reaching thousands of dollars upfront. The FARE Act aims to address this imbalance by requiring landlords—who typically enlist brokers to find tenants for their units—to cover those fees themselves.
Tenant advocacy groups, who have long pushed for this change, hailed the law as a long-overdue correction in favor of housing fairness. “This is about equity and ensuring that access to housing isn’t dictated by someone’s ability to pay arbitrary fees,” said a spokesperson from the Legal Aid Society.
The law’s proponents argue that broker fees, which can equate to up to 15% of the annual rent, have been a barrier to housing for low- and middle-income New Yorkers. By removing this upfront cost, the city hopes to make the rental process more inclusive and reduce instances of housing insecurity.
Industry Reactions and Adaptation
The real estate industry’s response to the new law has been mixed. While some brokers have voiced concern over potential income loss, others are adapting by repositioning their services toward landlords. Brokerages are reportedly revising their business models to cater more directly to landlords’ needs, such as offering bundled property marketing and tenant screening packages.
“Landlords will need us more than ever now,” said one Manhattan-based broker. “They’re not just paying us to show apartments—they’re paying for expertise, vetting, and speed.”
Still, some fear that the change could lead landlords to bake the cost of broker fees into monthly rent, potentially driving up prices in a city already notorious for high living costs. While the law aims to make housing more equitable, experts caution that market responses could vary depending on location, property type, and rental demand.
Potential Economic Ripple Effects
Economists and housing policy analysts are watching closely to see how the new law plays out across different boroughs. Some predict that landlords of high-demand properties may absorb the fees with little change to pricing, while those managing lower-margin buildings might raise rents or reduce investments in maintenance.
This raises the possibility of shifting cost burdens in more subtle ways, potentially affecting housing quality or long-term affordability. “The law changes who writes the check,” noted a professor of urban planning at NYU, “but it doesn’t eliminate the cost.”
In addition, questions remain about enforcement and compliance. The city’s Department of Housing Preservation and Development (HPD) has said it will monitor the law’s implementation closely, encouraging tenants to report violations and pledging swift action against non-compliant landlords or brokers.
A National Trend Toward Renter Protections?
New York’s FARE Act also reflects a broader national conversation about tenant rights and housing affordability. In cities like San Francisco, Seattle, and Portland, similar initiatives have sought to curb the power imbalance between landlords and tenants by regulating fees, limiting security deposits, or capping rent hikes.
The Biden administration has recently voiced support for tenant protections as part of its broader housing agenda, encouraging municipalities to explore laws that make rental housing more accessible and transparent.
Advocates see New York’s move as a potential bellwether. “What happens in New York often influences what’s possible elsewhere,” said a representative from the National Low Income Housing Coalition. “This could signal a turning point in how cities structure the financial dynamics of renting.”
Looking Ahead
As the FARE Act begins to impact rental agreements, all eyes will be on how landlords, brokers, and tenants adapt. Early reactions suggest a transitional period ahead, with adjustments on all sides as the market recalibrates.
City officials have stated that they will review the law’s effectiveness over time and are open to adjustments based on stakeholder feedback and observed outcomes. For now, the act represents a significant milestone in the city’s ongoing effort to promote fairness and transparency in the housing market.