FARE Act and Broker Fee Rules in NYC: Landlord Compliance and Listing Strategy

Botway·3 min read

FARE Act and Broker Fee Rules in NYC: Landlord Compliance and Listing Strategy

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

Executive Thesis

The FARE Act is in effect. Since June 11, 2025, an NYC landlord's agent and an authorized listing agent may not charge a prospective tenant a fee connected with renting the apartment. The landlord cannot require the applicant to hire a particular agent or dual agent. A renter remains free to hire and pay an independent tenant's agent voluntarily.

Compliance Gate

Before a listing goes live, record:

the landlord;
each agent and the party that agent represents;
the landlord-side commission agreement;
every fee the tenant must pay; and
the person responsible for the signed pre-lease fee disclosure.

If a broker publishes the apartment with the landlord's permission, treat that broker as a listing agent who cannot collect a fee from the renter. Do not relabel the same relationship as tenant agency.

Before lease signing:

Confirm the listing disclosed all tenant-payable fees.
Give the renter a written itemized list with a description of each fee.
Obtain the renter's signature and provide a copy.
Retain the signed disclosure for three years.
Keep the application/background-check charge within RPL §238-a.

Listing Strategy

The FARE Act changes who may be charged; it does not set the broker's commission. The owner should negotiate compensation based on scope and expected value, then compare that cost with vacancy burn and the cost of self-managing the leasing process. A voluntary tenant-agent relationship is outside the owner's pricing decision.

Verified Sources

Fetched and read August 7, 2026:

Who pays a landlord's or listing agent's fee?

The tenant may not be charged that fee. The landlord and broker should address compensation in their own agreement.

May a tenant hire a broker?

Yes. A renter may voluntarily retain and pay an independent tenant's agent, but no one may condition access to an apartment on the renter hiring a broker.

What does Botway do?

Botway records agency roles, listing disclosures, and the landlord's leasing cost. A human approves the listing agreement and any nonstandard fee arrangement.

Work With Botway

Botway can compare negotiated landlord-side brokerage cost with vacancy and direct-leasing cost while keeping the legal fee allocation fixed.

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.