Broker Fee Regulatory Framework - NYC FARE Act Compliance for Landlords

Botway·4 min read

Broker Fee Regulatory Framework - NYC FARE Act Compliance for Landlords

SECTION: Landlord Performance Playbook
JURISDICTION: New York City
AUDIENCE: Landlord, Leasing Operator, Property Manager

Current Rule

New York City's Fairness in Apartment Rental Expenses Act, Local Law 119 of 2024, took effect June 11, 2025. It is no longer accurate to describe the law as proposed or the allocation rule as unsettled.

A landlord's agent may not impose or collect from a prospective tenant a fee related to renting residential real property.
A broker who publishes a rental listing with the landlord's permission is treated as a listing agent and may not charge the tenant for that rental.
The landlord is liable when the landlord's agent or authorized listing agent charges the prohibited fee.
A landlord or agent may not condition access to an apartment on the prospective tenant hiring a particular broker or a dual agent.
A renter may voluntarily hire and pay an independent tenant's agent. That agent cannot make access to particular units or identifiable inventory conditional on being hired.
Rental listings must disclose every fee the tenant must pay. Before lease signing, the landlord or agent must give the tenant a written itemized fee disclosure, obtain the tenant's signature, give the tenant a copy, and retain the signed disclosure for three years.
The law creates DCWP enforcement, civil penalties, possible restitution, and a private civil cause of action.

The statewide $20 application/background-check rule remains separate under Real Property Law §238-a.

Operating Procedure

Identify in writing whom each broker represents before marketing begins.
Treat any broker publishing with the owner's permission as a landlord/listing agent for fee purposes.
Put the landlord-side commission in the listing agreement; do not pass it through to the renter under another label.
Do not require the applicant to retain a particular broker or accept dual agency.
State all tenant-payable fees in every listing.
Deliver, sign, copy, and retain the itemized pre-lease fee disclosure for three years.
If a tenant separately retained an agent, preserve the independent engagement and confirm that access to the unit was not conditioned on it.
Escalate unusual fee structures to NYC real-estate counsel before collection.

Economic Decision

The legal allocation is fixed; the commission amount and scope of service remain negotiable. Model landlord-side brokerage cost against expected vacancy, marketing labor, and conversion, but do not use that model to shift a landlord-agent charge to the renter.

Verified Sources

Fetched and read August 7, 2026:

Can an NYC renter ever pay a broker fee?

Yes, when the renter voluntarily hires an independent tenant's agent. The landlord's agent or an authorized listing agent cannot charge the renter, and access to a unit cannot be conditioned on hiring a broker.

Is the FARE Act still only a proposal?

No. It took effect June 11, 2025, and DCWP's current FAQ states the operative requirements.

What must a listing disclose?

Every fee the prospective tenant must pay to rent the unit. The landlord or agent must also provide an itemized written fee disclosure before signing the lease and retain the signed disclosure for three years.

Work With Botway

Botway can model the landlord's negotiated brokerage cost and preserve fee disclosures. It will not characterize a landlord or listing agent as the tenant's broker to transfer the fee.

This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.