Broker Fees: Who Pays When You Rent

For years, New York City renters routinely paid a broker fee of 12 to 15 percent of a year’s rent, even when they never hired the broker. That changed in 2025. Here is how broker fees work now, in the city and in Westchester County.

The FARE Act in New York City

The Fairness in Apartment Rental Expenses Act (NYC Local Law 119 of 2024) took effect on June 11, 2025. Its core rule is simple: whoever hires the broker pays the broker.

• The landlord hired the broker: if a broker listed the apartment for the landlord, the landlord pays that broker. You cannot be charged a broker fee.
• You hired the broker: if you sign an agreement with a broker to search for apartments on your behalf, you pay that broker, on the terms you agreed to in writing.
• Fees must be disclosed: listings and rental agreements must clearly show every fee a tenant will pay before the lease is signed.

Watch for disguised fees

Charges relabeled as “move-in fees,” “processing fees,” or lease clauses that shift the landlord’s broker fee onto you are not allowed. The NYC Department of Consumer and Worker Protection (DCWP) enforces the law, and you can file a complaint with DCWP or by calling 311.

What you can still be charged

Separate state rules still apply to move-in costs. In New York, a security deposit can be no more than one month’s rent, and a landlord can charge no more than $20 for a background and credit check. First month’s rent is due at lease signing as usual.

Renting in Westchester County

The FARE Act is a New York City law, so it does not apply in Westchester. Broker fees there depend on the listing and the agreement. At Sanchez Brokerage, any fee is disclosed to you in writing before you view an apartment, so you’re never surprised at signing.

How we handle fees

When a landlord hires us to lease an apartment, the landlord pays us and you pay no broker fee. If you’d like us to run a dedicated search for you, we’ll explain our fee and put it in writing before we start. Contact us with any questions.

This page is general information, not legal advice. Rules can change; check with DCWP or an attorney about your specific situation.