New York City broker fee ban shifts payment to landlords


Moving to NYC? Read This Before You Sign

Moving is stressful enough without surprise fees. If you’re heading to New York City, a big change to broker fees could lower your upfront costs—and shape how you budget. Here’s what’s new, what to expect, and how to plan a smooth, affordable move.

Context: NYC’s broker fees just changed

For years, many NYC renters paid a broker fee even when the landlord hired the broker. That fee typically equaled 10%–15% of a full year’s rent—often several thousand dollars due at lease signing. With high rents and first month plus security due, move-in costs stacked up fast.

The City Council approved the Fairness in Apartment Rental Expenses (FARE) Act with a veto-proof majority. Under the bill, when a broker is hired by a landlord—or lists the property on their behalf—the landlord must pay that broker. This aims to reduce the large, upfront cash burden on tenants.

What this means for your move

- If the landlord uses a broker or the broker lists the unit for the landlord, that broker’s fee should be paid by the landlord—not you.
- You’ll likely still owe first month’s rent and a security deposit (often up to one month).
- Application, pet, and move-in fees may still apply, but these are separate from broker compensation.

Key costs to budget for (and how much)

Average NYC rent is high, and move-in cash needs have been steep. Pre-change, renters often faced first month’s rent, security deposit, and a broker fee that could top $5,000–$7,000 on typical listings. A recent analysis found NYC tenants paid over $10,000 on average in upfront costs. With the FARE Act, many renters should see lower cash due at signing when a landlord’s broker is involved.

Still plan for:
- First month’s rent
- Security deposit (commonly one month, sometimes less)
- Application and screening fees (usually modest, but ask upfront)
- Pet-related deposits/fees if applicable
- Moving expenses (truck, labor, parking, tips, insurance)

City/Status Who typically pays broker (landlord-listed units) Upfront cash impact
NYC (Before FARE) Often the tenant, 10%–15% of annual rent High: first month + security + large broker fee
NYC (After FARE) Landlord pays if they hired/listed via broker Lower: broker fee off tenant’s plate in many cases
Boston (Current) Tenant often pays broker Varies: broker fee commonly due upfront

Implications: How the rule change could affect prices

Some brokers and landlords argue costs could shift into monthly rent. For example, instead of a one-time $5,000 broker fee, a landlord might raise rent to spread that cost across the lease term. Others say the market will adjust over time and that shifting payment to whoever hires the broker is more transparent and common-sense.

What this means for you: compare total cost of living, not just move-in cash. A slightly higher monthly rent might still be better than a big upfront fee if it preserves your savings. Conversely, a low sticker price with steep upfront costs can strain your budget.

Smart steps to reduce stress and cost

1) Confirm who hired the broker—before you tour

Ask directly: “Is this a landlord’s broker? Will the landlord pay the fee under the FARE Act?” Get the answer in writing (email or message). If a broker expects you to pay, clarify why and under what legal basis.

2) Request a full fee breakdown upfront

Ask for a line-item list: first month’s rent, security deposit, application/admin fees, pet fees, move-in fees, and any required insurance. Surprises often hide in “admin” categories—clarify each item.

3) Compare total cost over 12 months

Build a quick cost sheet for your top options: upfront cash, total 12-month rent, and any recurring fees. This keeps apples-to-apples comparisons clear and helps you spot “cheap now, costly later.”

4) Time your move strategically

NYC demand swings seasonally. If possible, avoid peak late-spring and summer. Shoulder seasons can mean more negotiable terms, small concessions, or slightly lower prices.

5) Keep proof of compliance

Save listings, emails, and texts that show who listed the unit and who is paying the broker. If a dispute arises, documentation helps you enforce the rules.

What to watch next

- Market adjustments: Some landlords may test rent increases. Compare multiple listings and don’t rush—competition limits price hikes.
- Implementation details: Leasing offices and smaller landlords may need time to align practices; ask questions and keep written records.
- Self-managed units: Landlords handling leasing themselves may skip brokers altogether. That can reduce fees, but verify fair-housing compliance and proper documentation.
- Other cities: Boston still commonly places broker fees on tenants. If you’re moving between cities, research local norms early.

FAQs

  • Do I still pay any broker fee in NYC?
    If a landlord hired the broker or the broker listed the unit for the landlord, the landlord should pay under the FARE Act. Always confirm in writing.
  • What upfront costs should I expect now?
    Typically first month’s rent, a security deposit (often one month), and application/admin fees. Pet and move-in fees may apply.
  • Could my monthly rent be higher instead?
    Possibly. Some landlords may distribute broker costs into rent. Compare total cost of living across listings before deciding.
  • Can I put fees on a credit card?
    Many landlords prefer certified funds; some accept cards with a surcharge. Ask early how each payment must be made and plan your cash flow.
  • How do I protect myself during leasing?
    Get fee terms in writing, read the lease carefully, keep copies of listings and emails, and verify deposit rules and timelines.

Bottom line: in NYC, many renters should no longer shoulder a broker fee when the landlord uses a broker—reducing the move-in cash crunch. Still, build a realistic budget, verify who pays what before you tour, and compare total 12-month costs across multiple listings. Clear questions, written confirmations, and a simple cost sheet will keep your move on time, on budget, and free of unwelcome surprises.

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