Blog

FARE Game or FARE Trap? The New NYC Law That Changed Everything… and Raised Rents

Kelly Robinson

FARE Game or FARE Trap? The New NYC Law That Changed Everything… and Raised Rents

From The One Global Advisory Team at Compass

Just when renters thought they’d been thrown a lifeline, the NYC market pulled a plot twist worthy of a prestige drama. The FARE Act—a long-awaited law banning landlords from charging tenants broker fees unless the tenant hired the broker—was supposed to make moving more affordable.

And it did… for about five minutes.

Rents Spiked. Fees Disappeared. But Did Renters Actually Win?

The FARE Act took effect on June 11, 2025, and while it technically saved renters from paying 12–15% broker fees up front (which could easily be $7,000+), it also created an unintended ripple:

Landlords raised the rent—fast.

Within days:

The average Manhattan rent jumped ~15%, from ~$4,850 to ~$5,500.
Nearly 2,000 listings vanished overnight as landlords scrambled to re-price or hide units.
StreetEasy saw a 30% drop in public listings in some areas.

Broker Fees Are Gone, But You’re Paying Them Every Year Now

Let’s break it down:

Before FARE: You paid a one-time 15% broker fee = ~$9,000 on a $6,000/month lease.
After FARE: The landlord raises rent 15% permanently to $6,900/month.

That’s $10,800 more over one year—and if you stay longer, you keep paying that “fee” again and again.

Traditional Model: One-time 15% broker fee + stable rent.
FARE Model: No upfront fee—but rent is 15% higher every year.

By Year 3, renters under the FARE model could pay over $10,000 more than they would have with a broker fee.

Chart: Average Manhattan Rent Before & After the FARE Act

How Long Could This Last?

Industry insiders expect elevated rents to linger through Q3 2025, with a potential correction later in the year if vacancy rates rise or enforcement of illegal fees tightens.

But there’s also a structural shift in play:

If landlords normalize higher rents to offset lost fees, this could permanently reset pricing—especially in high-demand neighborhoods.
Meanwhile, tenant advocates and city agencies are gearing up for enforcement—but in a market as fast-paced as NYC, it’s hard to catch bad actors in real time.

OGA Observations: What This Means for You as a Renter

If you’re apartment hunting in post-FARE NYC, here’s what to keep in mind:

“No fee” doesn’t always mean cheaper. That higher rent you’re agreeing to could end up costing more than the old-school broker fee ever did. Do the math: if the rent is 15% higher, you’re now paying that “fee” every year you stay.
Ask who hired the broker. You only owe a broker fee if you hired them. If the landlord brought them in, the fee is not your problem—no matter how they try to dress it up as a “processing” or “admin” charge.
Document everything. Take screenshots of listings, emails, DMs—anything that shows what fees were disclosed and when. This isn’t just CYA—it could save you thousands if you need to file a complaint.
Watch out for creative upcharges. Some landlords are getting crafty with fake “technology fees” or “convenience charges” to sneak broker costs back in. If it walks like a fee and talks like a fee—it’s a fee.
You can report shady practices. NYC’s Department of Consumer and Worker Protection is taking this seriously. File a complaint online or call 311 if you think a landlord or agent is violating the new law.

Download Our FARE Act Tenant Checklist Here

Bottom Line

The FARE Act is a landmark shift in NYC real estate—but the market’s response proves that removing a fee doesn’t always mean reducing the cost. In classic New York fashion, landlords adapted overnight, and renters are left with a new kind of math: lower move-in costs, but higher rents with no end in sight.

At the end of the day, the fee may be gone…

But the price? Still sky-high.