Say Goodbye to Free Rentals: NYC Broker Fees Return—at 20%! [APRIL FOOL]

As if the summer of no broker fees wasn’t a dream come true, it’s already over! Get ready for broker fees to make a comeback in a big way, starting with a mandatory 20% of annual rent on all rentals in New York City.

The Return of Broker Fees

In 2024, the Fairness in Apartment Rental Expenses Act (FARE) was signed into law, abolishing broker fees for NYC tenants. This was hailed as a victory for renters, but the Real Estate Board of New York (REBNY) challenged the bill, arguing that it violated free speech and contractual rights. As a result, broker fees are back, and they’re not just a minor inconvenience—they’re now set at 20% of a tenant’s annual rent.

So, if you rent an apartment for $3,000/month, your broker fee would now be a whopping $7,200—that’s a hefty price to pay for finding an apartment. Previously, broker fees ranged between 8%-15% of the annual rent, but this new law takes it to a whole new level. Some critics are already calling this the “era of the captive tenant”, a phrase once coined by Council Member Chi Ossé in relation to FARE.

How Will This Affect Renters?

To help tenants navigate this new reality, a new app called FeeFighter will soon launch. This platform will allow tenants to bid on broker fees, hoping to bring a little competition into the process. However, this new system has sparked some debate—will it really help renters, or is it just adding a new layer of complexity to the rental process?

But that’s not all—rumor has it that landlords may even introduce “air fees”, charging tenants based on the airflow in their apartments. And for those of you who bought into this story, there may soon be a “fool’s fee” added to your bill!

Did We Get You?

Did we get you again? Of course, this is all part of our annual April Fool’s joke! If you want to see where we got the idea, check out the original report from Secret NYC—just don’t say we didn’t warn you! 

While broker fees will indeed be eliminated in NYC starting June 2025 as part of the FARE Act, we had to have a little fun before then. You can read more about the real changes and details on the FARE Act from thispress release from the NYC Council.

In the meantime, you can stay updated on mortgage brokerage trends and the industry’s top experts, such as Peter Karlin, by reading this article on his legacy of trust and expertise in mortgage brokerage.