NYC Renters and Landlords: The FARE Act Explained
The FARE Act: What You Need to Know
The Fairness in Apartment Rental Expenses Act, commonly called the FARE Act, has already changed how rentals work in New York City. While the headline shift is simple, broker fees are now paid by landlords, the real impact has been more layered.
Here is what the FARE Act means today, how the market has responded, and what renters and landlords should understand right now.
What Is the FARE Act?
Under the FARE Act, when a landlord hires a broker to market and lease an apartment, the landlord pays the broker fee. Renters are no longer responsible for those fees upfront.
This brings New York City closer to how most major rental markets operate. It also fundamentally changes how costs show up, not whether they exist.
What This Means for Renters
For renters, the most immediate change has been lower upfront move in costs. Without a broker fee due at signing, more people are able to enter the market, compete for apartments, and move more quickly when they find the right place.
At the same time, many renters have shown they are willing to pay higher monthly rent without the large upfront expense. Instead of paying a lump sum on day one, the cost is spread over time.
For renters who stay multiple years, this often feels more manageable. The key is understanding the full cost of the lease, not just the number you pay at move in.
What This Means for Landlords
While some landlords initially worried the FARE Act would reduce returns, what we have seen so far suggests the opposite in many cases.
Rents have risen as demand has adjusted to lower upfront barriers. Annual income has increased for many owners, even after accounting for a broker fee. Since that fee is typically paid only once, long term tenants often generate stronger overall returns.
In practice, owners are paying more in year one and earning more over the life of the tenancy.
Pricing correctly matters more than ever, but for landlords who understand the market, the math has often worked out favorably.
What About Brokers?
The role of brokers has not disappeared. It has sharpened.
Marketing, pricing strategy, tenant screening, and speed still matter, especially in a fast moving market. Landlords who try to self manage often underestimate how much time, coordination, and risk is involved.
Experienced brokers help apartments rent faster, reduce vacancy, and minimize costly mistakes. In many cases, that value is more visible now than it was before.
What We Are Seeing in the Market
So far, the data and day to day experience point to a few clear trends:
Demand remains strong across most Brooklyn and Manhattan neighborhoods
Renters are more flexible on price when upfront costs are lower
Well priced apartments move quickly
Overpriced listings sit longer and require adjustments
The rental market has not slowed. It has recalibrated.
My Take as a Brooklyn Rental Agent
After more than fourteen years working in Brooklyn rentals, my takeaway is simple. The FARE Act has changed how costs are structured, not whether strategy matters.
Landlords who understand pricing, presentation, and tenant quality are doing well. Renters who understand the full picture are making better decisions.
If you are renting out an apartment or searching for one, clarity is the real advantage. If you want to talk through how this affects your specific situation, I am always happy to help.
Work With Craig
Buying or selling Brooklyn Real Estate requires clarity, preparation, and steady representation. If you are considering your next move, I would be glad to help you navigate the process with confidence.
