The FARE Act, if signed into law, would take effect in 180 days. It mandates that NYC landlords cover broker commissions if they list properties

Renting an apartment in NYC could get less expensive as soon as May. The New York City Council voted 42-8 yesterday to pass the Fairness in Apartment Rentals (FARE) Act, shifting the burden of broker fees from renters to landlords.

NYC has one of the world’s highest living costs, with a median asking rent of ~$3,400 per month, according to Realtor.com. The broker’s fee tends to be 15% or more of annual rent, which means renters have to shell out a minimum of $6,120 for a place.

The cost to move into a rented apartment in NYC includes the broker fees, first month’s rent, and security deposit, which comes to an average of $12,951, up 59% from 2019 and 48% more than no-fee moves.

The FARE Act, if signed into law, would take effect in 180 days. It mandates that landlords cover broker commissions and pay brokers they hire. Failure to comply could mean fines of at least $1,000.

While Mayor Eric Adams expressed concerns that landlords could raise rents to offset the costs, potentially impacting tenants overall, City Council members, including the bill sponsor Chi Osse, argue it ends a “cruel” practice.

Proponents of the bill also say it could provide immediate relief for renters.

According to a New York City Comptroller Brad Lander report, 69% of NYC households are renters.

The bill could potentially ease one of the biggest pain points in the city’s rental market.