The FARE Act, which took effect on June 11, 2025, in New York City, prohibits landlords from passing broker fees onto tenants, requiring the party who hires the broker—typically the landlord—to pay the fee. This law aims to reduce the upfront costs for renters by banning forced broker fees and mandating clear disclosure of any fees in rental listings. Despite opposition from the Real Estate Board of New York (REBNY) and other real estate interests, legal attempts to block the law have been unsuccessful, with federal judges denying petitions to halt its enforcement. Early data indicates that renters are benefiting from savings on upfront broker fees, and rent increases have been modest following the law's implementation. The FARE Act is expected to reshape New York City's tight rental market, although some landlords have responded by raising rents or reconsidering the use of brokers. Similar legislation has been passed in Massachusetts, where Governor Maura Healey signed a provision eliminating tenant-paid broker fees, effective in the 2026 fiscal year. This move aligns with broader policy efforts to curb so-called "junk fees" in housing. Additionally, Nevada has enacted a law requiring landlords to return application fees to prospective tenants who do not secure apartments, reflecting a wider trend toward tenant protections in rental markets.
Thanks to @OsseChi and @NYCCouncil, the law is crystal clear: if a landlord hires a broker, they pay the fee. Now the City must actively enforce it. https://t.co/saRPJfg9HQ
Leasing Compliance Shifts for Summer 2025 https://t.co/8sJjPYfssq | by @hudsoncookllp
Under a new Nevada law, landlords must return application fees to prospective tenants who don’t get the apartment. https://t.co/H4zbvuVKid