The New York City Council approved a landmark bill on Wednesday that will require landlords, rather than tenants, to cover broker fees in most rental transactions. The legislation, named the Fairness in Apartment Rentals Act (FARE), passed with a substantial 42-8 majority, rendering it immune to a mayoral veto.
Unlike most U.S. cities, New York allows landlords to hire brokers and then pass the resulting fees on to tenants, an arrangement that FARE seeks to change. Set to take effect in 180 days, the new law mandates that brokers’ fees cannot be charged to tenants when the broker represents the landlord exclusively.
“This bill is a matter of fairness, aligning New York with the rest of the nation,” stated Councilmember Chi Ossé, the bill’s sponsor. His stance resonates with many renters, as recent figures from StreetEasy show that the average up-front rental cost in New York, including broker fees, has reached nearly $13,000, putting considerable strain on residents.
Supporters, including 33 council sponsors, contend that the bill will alleviate financial barriers and help address New York’s housing affordability crisis. StreetEasy’s General Manager, Caroline Burton, applauded the vote, emphasizing that the bill would ease relocation costs for residents and bring New York’s rental practices closer to those of other major cities.
However, opponents argue that the legislation could inadvertently backfire. The Real Estate Board of New York (REBNY) and other critics assert that landlords may simply incorporate broker fees into higher monthly rents, ultimately costing tenants more over time. Mayor Eric Adams has voiced similar concerns, noting the possibility that these costs could still reach tenants in other ways.
Council Speaker Adrienne Adams responded to his remarks by stating that City Hall had collaborated closely with lawmakers on the bill without expressing significant reservations. “The administration was involved in drafting this legislation, so I’m unsure where the mayor’s concerns stem from,” she said.
The eight council members who opposed the bill, including Republicans and two Democrats, voiced reservations about further regulating the rental market. Queens Councilwoman Vickie Paladino, a vocal critic, argued that such interventions only exacerbate the city’s housing issues. “This is another example of over-regulation that drives up costs. These broker fees will just end up incorporated into higher rents,” she warned.
