Broker fees often come with the territory of renting in New York City. However, recent legislative changes, specifically the passing of the Fairness in Apartment Rental Expenses Act, have broken the mold.
If you’re embarking on an NYC apartment search, we’re here to catch you up to speed with the latest broker fee developments. In this guide, we’ll cover everything you need to know about NYC broker fees, including what they are, how much they cost, and how they have changed since the FARE Act’s enactment. Here’s a preview of what we’ll cover:
- What are broker fees in NYC?
- How does the FARE Act affect broker fees?
- The NYC rental market post-FARE Act
- Tips for NYC renters
What Are NYC broker fees?
A broker fee is a move-in cost that renters pay to a broker who is managing the listing. Similar to how a real estate agent earns commission when representing a seller, a broker operates the same way. NYC landlords hire brokers to help showcase and manage their listings, including marketing, leading tours, and facilitating the application process for the property. In exchange, landlords pay the broker commission, which typically comes from the renter in the form of the brokers fee.
How much do broker fees cost?
The average brokers fee in NYC costs 15% of the property’s annual rent, shaking out to be about two months’ worth of rent. For example, if your apartment costs $4,000 a month, you would pay 15% of your annual $48,000. This would mean you’d have to set aside $9,600 for the brokers fee before signing your lease, which doesn’t even account for other move-in costs like the security deposit or application fees.
The FARE Act: NYC’s New Broker Fee Law
The FARE Act is a recent NYC rental law that went into effect on June 11, 2025. Designed to lessen exorbitant costs for renters, the FARE Act prohibits landlord-representing brokers from charging fees to tenants. This essentially means that whoever hires the broker must pay their commission. Typically, this person is the landlord, meaning one less move-in cost for renters. However, if a renter hires a broker to assist with their search, much like when someone hires a real estate agent, they will have to pay the fee.
The FARE Act also requires full fee transparency from landlords. So, when putting up a listing, that means landlords and their respective brokers must disclose and advertise fees up front. In another effort to make things easier on renters, this rule helps apartment hunters better understand their financial obligations. That way, there’s no room for costly surprises when it’s time to sign a lease.
Post-FARE Market Impact
Although the FARE Act took effect weeks ago, it continues to spark questions about the future of New York’s rental market. One pressing concern is: How will rent prices be impacted by the changes to broker fee delegations? Will landlords simply pass broker costs onto tenants by raising rents, or will they opt to bypass brokers entirely?
The long-term effects remain uncertain. However, one trend is clear—New York City rents have been steadily climbing for years. According to year-over-year data from Apartments.com, NYC rents increased by 3% in 2025. This upward trend suggests that rent hikes are likely to continue, and with the FARE Act in place, there could be potential for even higher spikes.
To protect yourself from potential rent spikes, consider focusing on rent-stabilized apartments. These units are subject to strict caps on rent increases, preventing landlords from imposing excessive hikes. For those who qualify, rent-controlled apartments are another option. These properties follow even stricter regulations and often offer much lower rental rates.
Tips for NYC Apartment Hunters
The NYC rental landscape isn’t easy to navigate, especially with the recent legislative developments and market fluctuations. To help you navigate the concrete jungle a bit better, here are some helpful tips for starting your apartment hunt.
Prioritize budgeting
It’s no secret that New York City is pricey. With an average rent of $4,030 per month, the city’s cost of living is exponentially higher than the national average. That said, it’s always wise to budget carefully, whether you’re faced with a brokers fee or not.
Set aside money for the first month’s rent and other upfront fees. Then, try to budget accordingly for other expenses like utilities, food, transportation, and other necessary expenses. Whatever you can do to financially prepare yourself for the NYC apartment hunt, do it.
Report wrongful fees
After these recent developments, make sure to report any violations of the FARE Act. If a landlord or broker wrongfully charges you a brokers fee, report them to the NYC Department of Consumer and Worker Protection with this form. First-time offenders will receive a $750 fine. After that, fines increase to $1,800 for a second offense and $2,000 for the third.
Narrow your search
Narrowing down your NYC apartment search can make the process easier. Start with a budget, limiting your scope only to rentals within your financial wheelhouse. Then, from there, choose from the city’s different boroughs and property types. Though you might find exactly what you’re looking for, starting with these three components should get you in the right direction. And luckily, it’s easy to get started right here on Apartments.com!
Explore Apartments for Rent in NYC on Apartments.com
Apartment hunting in New York City, with or without a broker, can feel overwhelming. With countless options and costs to juggle, it’s hard to know where to start. That’s where a streamlined, user-friendly platform like Apartments.com proves invaluable. Easily narrow your search by neighborhood, budget, and amenities, and explore detailed photos and virtual tours before booking in-person visits.
Ready to find your perfect NYC apartment? Begin your search today on Apartments.com and discover your ideal home in the city that never sleeps.
FAQs
How much is a broker fee in NYC?
A broker's fee in NYC typically ranges from one month's rent to 15% of the annual rent. This fee is negotiated between the broker and the renter.
Who pays the broker fee in NYC?
The FARE Act dictates that whoever hires the broker pays the broker fee. If a landlord hires the broker to represent their listing, they are legally obligated to pay the fee. However, if a renter enlists a broker to aid their apartment search, they pay the broker fee.
What should I do if I have already paid a broker fee unlawfully?
If you believe you’ve paid an unlawful broker’s fee, you can file a complaint with the NYC Department of Consumer and Worker Protection. Collect all relevant documents, such as receipts and contracts, to support your claim.
