New York city rental fees & deposits
If you've already lived in New York you know what an ordeal it can be to find the right place.
Previously, you'd have to fork out for a broker's fee, typically this was either one month's rent or 10-15% of the yearly rent. HOWEVER, as of June 11, 2025 the Fairness in Apartment Rental Expenses (FARE) Act takes effect in New York City which changes everything.
What is the FARE Act?
The FARE Act shifts the financial responsibility of broker fees from tenants to landlords but only when the landlord is the one who hires the broker or real estate agent to lease the unit. If a renter chooses to work with a broker on their own, they'll still be expected to cover that cost themselves.
Landlords must also disclose all fees that tenants will pay to rent an apartment before tenants sign a rental agreement.
What does the FARE Act mean for renters?
Lower Upfront Costs: Renters are no longer responsible for broker fees when the landlord hires the broker - this could save thousands at move-in.
Possible Rent Increases: Some concerns have been raised that landlords might raise monthly rent to offset the extra cost of paying broker fees themselves. However, units that are rent-stabilized or protected under Good Cause Eviction laws are shielded from sharp rent hikes.
When do you still need to pay a fee?
Renters who hire their own broker or agent directly will still pay the broker fee.
What penalties can landlords or brokers face if they fail to follow the rules?
Brokers must clearly disclose whom they represent before signing any contract.
All charges must be clearly listed in the rental agreement before signing. If a fee looks unusual or inflated, ask what it covers. If the explanation isn't clear, the listing could be in violation. Landlords and agents who don't follow the rules may face penalties. Before signing, ensure all fees are clearly documented in writing.
The FARE Act aims to reduce the upfront financial burden on renters. Understanding your rights and the new rules will help you navigate the NYC rental market.
For more information or to report violations, contact the NYC Department of Consumer and Worker Protection.
Other things you need to know about renting in NYC…
In general, landlords require you to make at least 40 times the monthly rent per year, or they'll need a guarantor (who needs to make 80 times the rent). Most charge an application fee and will also charge you for a credit check (these fees are allowed under the FARE Act). Under NYC's FARE Act, landlords can charge a maximum of $20 for a credit and background check, and must provide receipts if requested.
If your credit doesn't meet their requirements, you'll need a guarantor with (again) 80 times the rent and a strong credit score. The guarantor agrees to cover the rent if you can't, and in some cases may be required to co-sign the lease.
By law, landlords in New York are not allowed to charge more than one month's rent as a security deposit for most traditional rentals. This rule comes from the 2019 Housing Stability and Tenant Protection Act (HSTPA).
However, in less formal rental situations, like shared apartments, different arrangements are sometimes made. These may include paying more than just a security deposit upfront, such as first and last month's rent. While these setups may not follow the same rules as standard leases, they're still common when sharing with roommates.
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