NYC Council passes historic ban on mandatory broker fees for renters

The New York City Council voted on Wednesday to ban mandatory broker fees for renters, passing the Fairness in Apartment Rental Expenses (FARE) Act with a veto-proof margin of 42-8. The law, which takes effect in six months, eliminates the widespread practice of tenants paying broker fees—often 15% of annual rent—even when the broker represents the landlord.

“This legislation will empower tenants by reducing upfront costs and giving them more leverage in lease negotiations,” said Councilmember Chi Ossé, who sponsored the bill. Ossé pointed out that these fees have long burdened New York’s renters, adding, “For too long, renters have shouldered an unfair financial load.”

The bill has sparked excitement among renters, who make up two-thirds of the city’s households, with many expressing support on social media. Yet the measure has faced sharp opposition from the Real Estate Board of New York (REBNY), which warns it could upend rental industry dynamics and harm tenants in the long run.

“Wednesday’s vote is yet another instance of prioritizing ideology over economic and practical reality when it comes to the city’s rental housing stock,” said REBNY President Jim Whelan. He argued that landlords might simply shift broker costs onto tenants through higher monthly rents. “This law fails to address how the costs will ultimately come back to renters,” Whelan added.

REBNY had proposed an alternative measure emphasizing greater transparency over the payment structure, but it was not adopted. Now, with 25,000 jobs potentially affected, REBNY has hinted at legal action. “REBNY will continue to pursue all options to fight against this harmful legislation on behalf of our members and the renters they serve,” Whelan said.

In response to concerns about potential rent hikes, Ossé dismissed the idea that landlords would necessarily increase rents, asserting, “The rental market has its own checks and balances. Tenants deserve fairness, and this law is a step toward that goal.”