Leasing after the FARE Act. What changed for agents.
The broker fee did not disappear. It moved. Here is what the law requires from leasing agents, and what more than a year of listings shows about how the market adjusted.
Since June 11, 2025, a leasing agent hired by the landlord cannot charge the renter. Whoever hires the broker pays, and every renter fee must be disclosed in the listing.
- →An agent who posts a listing is presumed to work for the landlord.
- →Fines run $750, $1,800 and $2,000 for repeat violations.
- →Listings demanding a broker fee fell from 2.2% to 0.06%.
For a long time, leasing in New York had a simple model.
The landlord hired you.
The renter paid you.
Usually one month’s rent, sometimes up to 15% of a full year’s rent.
On June 11, 2025, the FARE Act ended that model. More than a year later, here is what actually changed for agents, and what the data says about how the market moved.
What does the FARE Act require from agents?
It comes down to one rule. Whoever hires the broker pays the broker.
Everything else follows from that.
- The landlord’s agent cannot charge the renter. If the owner hired you, your fee comes from the owner.
- Posting the listing makes you the landlord’s agent. The city presumes any agent who posts a listing is working for the landlord.
- Every renter fee goes in the listing. Any fee the tenant will pay has to be disclosed in the ad.
- Every fee goes in writing before signing. The renter gets an itemized list of fees and acknowledges it in writing before the lease is signed.
- Renters can still hire you directly. If a renter hires their own broker, they can agree to pay that broker.
And it has teeth. The city can fine $750 for a first violation, $1,800 for a second and $2,000 after that.
Did agents stop charging renters?
Almost entirely.
A study of 2.3 million NYC listings compared June to July 2024 with June to July 2026.
Listings demanding a broker fee went from 2.2% to 0.06%.
That is close to zero. On that measure, the law worked.
So where did the money go?
Here is the part agents need to watch.
Over the same two years, listings with another mandatory fee on top of rent went from 0.7% to 6.7%. That is about 1 in 15 listings.
And units that used to carry a broker fee came back on the market asking 8.0% more, compared with 3.7% for units that never had one. The researchers call that a ceiling on how much of the fee got passed through, not proof that all of it did.
So the market tried two things.
Move the fee into a different line.
Move the fee into the rent.
Here is how I see it. The first one is a risk to you. If a renter pays it, it has to be disclosed in the listing and itemized before signing. An agent who posts a listing with a fee that is not clearly disclosed is the one standing in front of the city.
What actually changed about the job
The fee rule changed who signs your check. It also changed what the owner is paying you for.
When the renter paid, the owner did not feel your fee. Now they do.
So owners are asking a new question: what did I get for it?
The honest answer has to be speed and quality.
A unit that leased fast.
A tenant who could actually pay.
Fewer weeks of empty rent.
Agents who can show that keep their clients. Agents who were really getting paid for holding the key are going to have a harder time.
What I would tell any agent right now
- Check every listing for fees. If a renter pays anything beyond rent and deposit, it is in the ad, in plain language.
- Keep a written fee sheet. Itemized, given before signing, acknowledged by the renter. Every deal, no exceptions.
- Be clear about who you represent. If you posted the listing, assume the city sees you as the landlord’s agent.
- Sell speed to owners. Your fee is now a line on their books. Show them the days you saved.
- Don’t play the fee shell game. A broker fee renamed as a “processing fee” is still a fee the renter pays. Disclose it or drop it.
The FARE Act did not end leasing as a career.
It ended getting paid by someone who never hired you.
That is a fair trade.
“The fee did not vanish. It moved to whoever hired you.”
Frequently asked questions
Can a listing agent charge a tenant a broker fee in NYC?
No. Under the FARE Act, the landlord's agent cannot charge the tenant, and the city presumes an agent who posts a listing works for the landlord.
Can a tenant still hire and pay their own broker?
Yes. A tenant who hires their own broker can agree to pay them.
What are the fines under the FARE Act?
$750 for a first violation, $1,800 for a second, and $2,000 after that.
When did the FARE Act take effect?
June 11, 2025.
Einhorn, Gabe. “Leasing after the FARE Act. What changed for agents.” Nessoo Report, Nessoo (nessoo.com), Oct 16, 2026.
Co-founder of Nessoo, the verify-first rental marketplace in New York. He writes every Nessoo Report. nessoo.com
Sources
- NYC Department of Consumer and Worker Protection, FARE Act FAQ
- 6sqft, "NYC's broker fee ban takes effect," June 11, 2025 (fines; typical pre-law fee range)
- RentReboot Research, Aug 17, 2026: 2.3 million NYC listings, June to July 2024 vs June to July 2026