The FARE Act: How New York’s New Broker Fee Law Is Shaking Up Rentals, Sublets, and Lease Takeovers

If you’ve ever tried to find an apartment in NYC—especially something short-term or flexible—you know the struggle is real. For years, the process has felt like a scavenger hunt with no map: confusing landlord rules, unpredictable fees, and the infamous broker charge that could blow up your budget just when you thought you’d found “the one.” But as of June 2025, there’s a new law that could actually make things a bit more navigable: the Fairness in Apartment Rental Expenses Act, better known as the FARE Act.

So, What Is the FARE Act?

At its core, the FARE Act is about fairness and transparency. It flips the script on broker fees, making the party who hires the broker—almost always the landlord or property manager—responsible for paying them. That means if you’re a renter and the landlord uses a broker to list or show the apartment, you’re no longer on the hook for that fee

This is a big deal. Broker fees in NYC have long been a major barrier, often running 12-15% of annual rent and pushing upfront costs to nearly $13,000 for many renters. The FARE Act is projected to cut those upfront costs by nearly 42%, making it much easier for New Yorkers to move, whether they’re chasing a new job, a bigger space, or just a better deal.

How Does This Impact Regular Rentals?

For the average renter, this law is a breath of fresh air. No more last-minute sticker shock when what you thought was a “no-fee” apartment actually comes with a hefty broker charge. Now, listings must clearly disclose all fees up front, and if you didn’t hire a broker, you don’t pay for one.

It remains unclear whether the recent changes will have a positive or negative impact on long-term affordability; however, one thing is certain: the upfront costs will be less burdensome, making housing more accessible. While some landlords and brokers warn that these costs might get “baked into the rent,” they will likely be spread out over the lease, rather than demanded all at once.

What About Sublets?

Sublets have always lived in a gray zone. Usually, you’re working directly with another tenant, not the landlord. Broker fees rarely came into play unless a broker was actually involved in arranging the sublet. The FARE Act doesn’t overhaul sublet rules, but it does raise the bar for transparency and fair dealing. If a landlord hires a broker to get involved, the landlord pays the broker fee—not you.

Tenants looking to sublet can now feel more empowered to handle things directly, without a broker, especially as landlords face increased pressure to avoid adding unnecessary fees. While the FARE Act doesn’t directly govern sublets, its emphasis on fee transparency could encourage more landlords to approve tenant-arranged sublets without involving brokers, particularly in a market where flexibility and speed are key to filling units.

Lease Takeovers: A Smoother Ride

Breaking a lease in NYC has always been stressful, especially when you’re scrambling to find someone to take over your spot. In the past, a landlord might hire a broker to find your replacement—leaving the new tenant with a hefty fee. Not anymore. Under the FARE Act, if the landlord hires a broker for a lease takeover, the landlord pays the fee. This makes lease transfers less intimidating and more accessible for everyone involved.

What This Means for You

• Lower upfront costs: You’ll save thousands on broker fees if you’re not the one hiring the broker.

• More transparency: All fees must be disclosed up front, so you know exactly what you’re paying for.

• Flexibility: Sublets and lease takeovers should get more transparent and easier, with fewer surprise charges.

• Landlords may adapt: Some may skip brokers altogether, list apartments themselves, or get more creative with incentives to fill vacancies quickly.

  
  

Final Thoughts

The FARE Act doesn’t magically fix New York’s housing crunch, but it does level the playing field a bit. For renters, subletters, and anyone navigating a lease transfer, it’s a new era of transparency and fairness. If broker fees kept you on the sidelines, this might be your cue to jump back into the market—without the fear of a last-minute fee bomb.

For those listing sublets or taking over a lease, it's one more reason to ditch the chaotic Facebook groups and Craigslist-style scavenger hunts. A new era of transparent, easier housing is finally (maybe) on the horizon and Stooper is looking forward to getting us there.

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