New Broker Fee Law in NYC Spurs Rent Hikes and Persistent Scams

This summer, securing an apartment in New York City was expected to become more affordable for renters, thanks to a new law that shifts broker fees primarily onto landlords rather than tenants.

For many renters, this change has been beneficial. However, an analysis of 1.3 million listings on a leading rental platform reveals a notable side effect: a significant number of landlords increased rents sharply—often by several hundred dollars monthly—during the week the law came into force in June.

Although rent hikes are common during the busy summer leasing season, data indicates that June’s median rent growth exceeded typical seasonal patterns.

The spike in rent adjustments coincided closely with the enactment of the FARE Act on June 11, which established a straightforward yet impactful rule: brokers may only charge fees to tenants who personally hire their services.

The rental platform later published a report suggesting that the new law did not negatively affect the rental market overall. Nonetheless, the company acknowledged the noticeable surge in rent increases when questioned recently.

A senior economist at the rental site explained, “There’s no free lunch. Landlords tend to recoup added expenses by raising base rents, as they operate businesses rather than charities.”