The FARE Act Is Now in Effect: What NYC Landlords Need to Know

As of June 11, 2025, the Fairness in Apartment Rental Expenses (FARE) Act has officially taken effect in New York City, reshaping how broker fees are handled in residential leasing.

The new law shifts the financial responsibility for broker commissions in situations where a broker is acting with the property owner’s authorization or on the owner’s behalf. Under the FARE Act, tenants cannot be charged a broker fee for listings advertised or shown by brokers retained or permitted by the landlord. Additionally, landlords may not require tenants to work with a broker—whether directly or through dual agency.

Key provisions include:

• Landlords must cover broker fees when the broker is representing or listing with the owner's permission.

• Tenants cannot be charged for viewing exclusive listings posted on behalf of the owner.

• Landlords cannot mandate broker use (including dual agents) as a condition of lease or application.

• A rebuttable presumption now exists that broker-advertised listings are authorized by the landlord—potentially exposing owners to penalties for unapproved postings.

• Penalties of up to $2,000 per violation may be imposed for noncompliance.

  
  

Compliance Practices for Owners and Managers:

• Review all current and future listing arrangements with brokers to ensure they comply with the law. Owners must pay all broker fees unless the tenant hires their own broker.

• Provide tenants with an itemized list of any fees due before lease signing.

• Include clear broker fee and involvement disclosures in your leases.

• Monitor all online listings associated with your properties to avoid inadvertent liability.

  
  

Sandman Malin PLLC advises multifamily property owners and managers on lease compliance and broker relationships under the new legal framework. We’re here to help you assess risk, revise leasing procedures, and ensure your practices align with the FARE Act.