Renting an apartment in Manhattan - or in any desirable neighborhood across the East 

River - has always been a costly affair. In addition to steep prices (the average rent 

for a New York City one-bedroom is currently $2,575), fees to brokers 

representing landlords and other upfront costs are averaging almost $13,000. It’s 

a daunting expense that has made our fabulous city an unaffordable zip code for many 

individuals.

All this is about to change. The Fairness in Apartment Rental Expenses (FARE) Act 

makes broker fees the responsibility of the party who hires the broker — which, 

in most cases, is the landlord. It requires landlords or their brokers to disclose and 

advertise any fees a tenant must pay on their rental listings and in rental agreements. 

The FARE Act passed New York City Council mid-November – but be patient, it’s 

going to be about six months until the new rules go into effect. Until then, the city’s 

current broker fee rates remain unchanged, ranging from one month’s rent to 

15% of yearly rent charges.

The benefits are far reaching.

Lowering the financial barrier to securing an apartment can lead to a healthier 

market for renters, brokers and landlords alike. When the FARE Act becomes law, 

tenants will be able to move more frequently, improving the inventory of rentals. This 

legislation is a step in the right direction to improve the overall housing market in New

York City. By lowering the upfront cost of moving, the FARE Act will open doors 

for thousands of renters moving to our city for the first time – plus residents 

eager to upgrade to a nicer apartment.

Expenses to consider…

It’s good news indeed, knowing that landlords will be paying the brokerage fees that 

have been a financial roadblock for many renters. But this is the real world of New York 

real estate, and some landlords might pass along a portion of these brokerage fees to 

the legal monthly rent of an apartment. For most renters, it’s a small price to pay for a 

beautiful new home.

Wishing you a joyous holiday.

Data provided by Aaron Ritter of Citizens Bank