By Manhattan Real Estate Tracker, August 10, 2025
On June 11, 2025, the Fairness in Apartment Rental Expenses, or FARE Act, went into effect. This law states that whoever hires the broker, pays the broker. It forbids brokers from charging tenants broker fees on behalf of landlords. Brokers who post listings with the landlord’s consent fall under this category. Other costs that the tenant must pay must be disclosed by landlords or their representatives in rental agreements and listings. More information can be found on the city’s website here.
There are two occasions when fees must be disclosed under the FARE Act. On the rental listing, fees that a prospective tenant must pay for the rental of an apartment must be conspicuously disclosed. These include application fees, and any other fees payable prior to lease signing. In addition, prior to lease signing, landlords or their agents must give tenants an itemized written disclosure of all fees the tenant must pay the landlord, or any person at the direction of the landlord, in connection with the rental of the apartment. The fees must include a written description, and the tenant must sign the itemized disclosure before signing a lease. Landlords or their agents must keep the signed disclosure for three years and give a copy to the tenant.