FARE Act Introduction of 360-A

What is New York City's Fairness in Apartment Rental Expenses (FARE Act)?

Passed on December 14, 2024 taking effect in June 2025 this bill would prevent brokers from charging their fees to tenants when they solely represent the landlord’s interests. This includes brokers who list rental properties with the landlord’s authorization. Landlords or their agents must disclose any fees tenants are required to pay in rental listings and agreements. The Department of Consumer and Worker Protection will be responsible for enforcement, as well as education and outreach efforts. Violations of this bill may result in civil penalties or legal action.

Who are effected?

People who utilize real estate agents such landlord, tenant, and of course real estate agents themselves are all affected by the bill. Landlords now incur the cost of rental broker fees which were traditionally paid by tenants. The additional cost would trickle onto the tenants with potential increase in rents. Tenants would see a lower upfront cost however with the potential rent increase would make rent applications harder to complete as some requirements such as income being 40x rent more difficult to accomplish and need of a guarantors/co-signers. Real Estate agents especially rental agents are directly affected as it is a source of income. Many agents now never before would need to present and negotiate for themselves when looking for commission for rental listings.

The goal of the FARE Act aims to reduce upfront cost for potential tenants, but the use of agents for landlords would potentially increase rents. These increased rents counteract the benefit of upfront cost as it would potentially raise rents case to case basis. I believe the FARE Act had good intentions but does not solve the issue of unaffordability living in New York City.