On November 13, 2024, the New York City Council passed the Fairness in Apartment Rental Expenses (FARE) Act, with 42 out of 51 council members voting in favor of the bill. Mayor Eric Adams did not sign or veto the bill — which requires property managers to pay broker fees if they hire an agent to advertise or market a rental unit instead of passing the fees on to tenants — so it automatically became law after 30 days. The law is now in effect as of June 11, 2025.

StreetEasy® and Zillow® believe these changes will benefit all sides of the market and help make the NYC renting process more fair, accessible, and transparent. StreetEasy is committed to helping agents navigate policy shifts and continue to succeed in NYC’s evolving market now that these changes have taken effect.

In this article, we’ll explore what the FARE Act entails and how it could impact agents, renters, and the NYC market as a whole.

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Learn more about how the FARE Act will impact NYC rental agents in this video.
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    What is the FARE Act?

    The FARE Act requires the party who hires the broker to pay the broker fee. Most of the time, the hiring party is the property manager, and in such cases, they can no longer force tenants to pay broker fees. It also requires property managers or their brokers to disclose and advertise any fees a tenant must pay on their rental listings and in rental agreements. If they don’t, they could risk a lawsuit or face penalties, including fines.

    The bill also states that renters can no longer be required to pay a broker fee as a condition of signing a lease agreement. That said, if a renter chooses to hire a broker to represent them, they’ll be responsible for paying that broker’s fee.

    When will the FARE Act go into effect?

    The FARE Act was passed by the New York City Council and automatically became law after Mayor Adams failed to sign or veto it within the allotted 30 days.

    The changes required by this legislation went into effect 180 days (about 6 months) after it was enacted into law. Therefore, the law is now in effect as of June 11, 2025.

    How will these changes impact NYC real estate agents?

    Now that the FARE Act is in effect, if you’re a broker who’s been hired by a property manager, you’ll need to work directly with the property manager — not the renter — for payment. Keep in mind that renters can still hire you to represent them, and in those cases, you can require the renter to pay your fee.

    All listings, including your StreetEasy listings, are required to clearly disclose any fees a tenant will be asked to pay to rent the property, including both upfront and recurring charges. Before a lease agreement is signed, the property manager or property manager’s agent must also provide an itemized written disclosure of any fees the tenant must pay to the property manager or any other person at the property manager’s direction, along with a short description of each fee.

    Note: The “no fee” listing designation and filter is no longer active on StreetEasy.

    How are violations reported?

    If a user comes across a reference to broker fees on a StreetEasy listing, they can use the Report function to alert our team, who will investigate the potential violation and take appropriate action.

    In the event that a renter is asked for a broker fee in violation of the FARE Act off-platform (e.g. when messaging with an agent), they can report it to the NYC Department of Consumer and Worker Protection (DCWP) via this form or by calling 311. DCWP is the city agency handling enforcement of this law.

    Why StreetEasy believes these changes are good for agents — and the NYC rental market at large

    We believe the FARE Act will positively impact the NYC rental market and all its participants, from agents to renters to property managers. The legislation is a step in the right direction toward increasing renter mobility and creating more transparency, affordability, and efficiency in the city’s housing market.

    In 2023, NYC’s rental vacancy rate was just 1.4%, the lowest in almost 60 years. And the housing shortage isn’t just impacting renters: 85% of rental agents say low inventory has impacted their business, according to a recent StreetEasy survey. By reducing tenants’ upfront costs, including broker fees, to move into a rental — which average $12,951, according to StreetEasy data — the FARE Act will help increase renter mobility. Tenants and rental properties will return to the market more frequently, creating more business opportunities for agents and a healthier rental market overall.

    The FARE Act will also create much-needed transparency and efficiency in the market. Agents can expect less back-and-forth communication due to ambiguity around broker fees, and have a clearer understanding of who’s responsible for paying them. The requirement to disclose fees upfront could also build greater trust between agents, renters, and property managers — all while helping property managers and agents connect with qualified renters, who will more easily understand whether they can afford a given unit.

    By lowering the financial barriers to moving within New York City, this legislation will unlock inventory for all industry participants while ensuring agents are paid fairly for their valuable work.

    What is StreetEasy doing to support agents and other industry partners?

    As the industry evolves due to the FARE Act, StreetEasy is here to provide agents with the support, tools, and resources they need to comply with new standards and succeed along the way. 

    Our listings will make compliance easier

    Starting June 11, 2025, every listing on StreetEasy must disclose all fees (one-time and recurring) in the listing description. This added transparency will help renters more easily understand what they can afford, and allow you to connect with informed, qualified tenants faster.

    As the FARE Act and its changes come into effect, we’ll continue to adjust the StreetEasy listing experience to meet agents’ needs under the latest market dynamics.

    We’re working toward policy changes to improve the NYC market

    StreetEasy and Zillow believe the FARE Act is just one step of many toward a more transparent, affordable, and efficient housing market. Here are other efforts we’re supporting to address NYC’s housing crisis:

    Lowering upfront costs: In addition to broker fee reform, StreetEasy and Zillow are collaborating with policymakers and advocates on policy and product solutions to help mitigate upfront costs, including:

    • Allowing tenants to pay their security deposit in installments over the full term of a lease rather than in full upfront, which can significantly reduce the burden of upfront costs.
    • Increasing transparency around fees to help renters better understand what they can afford when searching for a new home.
    • Making it easier for renters to report positive rental payment history to credit bureaus, helping them build credit through regular rent payments and unlock a path to homeownership.
    • Supporting closing cost and down payment assistance programs to reduce the upfront financial burden on buyers and help make homeownership more accessible.

    Increasing housing supply: As we aim to lower upfront costs and reduce friction in the process, there simply aren’t enough homes to meet demand — an issue hurting renters and agents alike. To alleviate the supply shortage, StreetEasy and Zillow are working with industry partners and housing affordability advocates to push for policy solutions such as:

    • Adopting tax incentive programs and zoning laws that allow the creation of accessory dwelling units (ADUs), basement-apartment conversions, and commercial-to-residential conversions.
    • Promoting practices that ensure consumers and agents have fair and transparent access to all real estate listings, enabling them to make informed decisions and find the home that is their best option, and allowing agents to provide the best possible service to buyers and renters.

    Reducing friction in the process: Even if we’re successful in lowering upfront costs and building more housing, friction still holds consumers and agents back. StreetEasy and Zillow are pushing to remove or reduce this friction by:

    • Strengthening the enforcement of fair housing laws and allocating resources to increase industry and renter education and outreach.
    • Supporting additional funding for housing vouchers and rental assistance programs.
    • Supporting requirements for consumers and real estate agents to enter into written representation agreements in all real estate transactions, ensuring consumers know the services they’ll receive from agents, how much they’ll pay for those services, and who will be paying for those services.

    Our efforts in these areas include partnering with fair housing advocates such as the Fair Housing Justice Center, Enterprise Community Partners, and the Center for NYC Neighborhoods (CNYCN), as well as industry groups like the New York State Association of Realtors (NYSAR), Hudson Gateway Association of Realtors (HGAR), and Long Island Board of Realtors (LIBOR) to push for resources and legislation to combat housing discrimination statewide. We’ve also signed the City of Yes letter and joined the Yes to Housing Coalition.

    Work with StreetEasy to create a healthier NYC housing market

    At StreetEasy, our agent partnerships are critical to better understand your needs and move our industry forward together. To that end, we connect with industry leaders who serve on the StreetEasy Agent Advisory Board throughout the year to discuss changes like the FARE Act. This allows us to better understand the impact of these policies on industry professionals, and how we can advocate for agents. Interested in being considered for StreetEasy’s 2026 Agent Advisory Board? Please fill out this intake form and we’ll be in touch with more information.

    StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy Concierge team members are real estate licensees, however they are not your agents or providing real estate brokerage services on your behalf. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property.