TRUE VIEW: What the FARE Act Really Means for NYC Renters — and the Rental Market at Large

The FARE Act — which took effect in NYC this week — is being touted as a big win for renters. But as with most policies aimed at simplifying or reducing cost in our city, the real impact is far more nuanced.

For years, hiring a real estate agent for a rental in NYC was about convenience, expertise, and saving time. In a city where thousands of listings turn over weekly, a seasoned agent could mean the difference between landing your dream apartment and missing it entirely. Yes, it’s expensive — like most things in New York — but for many, the tradeoff was worth it. Renters paid brokers to gain access to opportunities, to navigate opaque approval processes, and to manage the high-stakes, high-speed rental market without burning out or missing work.

Enter the FARE Act, which shifts the responsibility for broker fees from tenants to landlords — at least in cases where the broker was hired by the landlord. The intention is clear: make renting more affordable in a city where affordability feels increasingly out of reach. But within 24 hours of the law’s enforcement, we saw the first of what is likely to be many unintended consequences: rents started going up.

Why? Because landlords, now responsible for footing the broker bill in most cases, are passing that cost directly to tenants in the form of higher rent. In many cases, the increase exceeds the typical one-time broker fee amortized over the lease term. We are essentially reshuffling the cost burden, not eliminating it. More importantly, this shift has implications for access and transparency. If landlords are now the default client of the broker, who is representing the renter? Agents may become less incentivized to assist renters who aren't connected to a landlord, or worse — renters may find themselves without advocacy in a complex transaction. We could also see more unlisted apartments, exclusive off-market deals, or more opaque marketing strategies, reducing access and visibility for the very people the law is meant to protect.

I believe in real talk: Renting in NYC was never cheap — and likely never will be. But agents always played a role in making it manageable. The FARE Act aims to address affordability, but in execution, may undermine access, transparency, and representation.

It’s still early days, and we’ll be watching closely. But renters should be aware: this isn’t about skipping the broker’s fee — it’s about where the cost hides next.