Some brokers are still charging tenants despite a New York City law passed in 2024 banning them, officials say.

The Fairness in Apartment Rental Expenses, or FARE, mandates that the party who hires the broker must pay the broker. It bans landlords from passing the fee to renters.

The law shifts the financial burden of paying brokers from renters to landlords. The fees typically add up to about 12% to 15% of the annual rent. 

It went into effect June 11, 2025, so as of that date, if a renter didn’t hire the broker, they don’t pay the fee. If the tenant is forced to pay, it’s illegal. 

NYC receives more than 1,000 complaints of illegal fees

Despite this, Department of Consumer and Worker Protections (DCWP) Commissioner Sam Levine said the city has received more than 1,400 complaints about alleged illegal fees.

“Some brokers just are not following the law,” he said.

Officials issued 50 summonses to brokers, landlords and property managers. Complaints are falling as enforcement increases, but Levine says the law is being tested.

CBS News New York Investigative reporter Mahsa Saeidi asked him, “How much of a black market is there?”

“Anecdotally, I think it could be significant,” Levine said. 

Some brokers avoid a paper trail, councilmember says

City Councilmember Chi Ossé, who sponsored the FARE Act, said some brokers are avoiding the paper trail.

“Our recommendation to prospective tenants is to make sure that your communication with a broker is through text, through email, through something that you can document and prove to the city. Especially if what’s taking place is illegal,” he said. 

Anyone who has paid a broker fee they think might be illegal can file a complaint with DCWP online or call 311.

Make sure to have a copy of the lease, screenshots, proof of payment and the name of the broker and landlord ready. 

City officials say fines are being issued and refunds are happening. 

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