UPDATE Broker Fees NYC: What the FARE Act Means for Your Employees

As of June 11, 2025, the FARE Act (Fairness in Apartment Rental Expenses) is officially in effect across New York City.
This legislation puts an end to the long-standing practice where brokers hired by landlords could pass their fees on to tenants.

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🔄 What does it change?

• If a landlord hires a broker, the broker can no longer charge the tenant — they must be paid by the landlord.
• If a tenant chooses to hire their own broker, they are still responsible for that cost — as was already the case.

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💼 What this means for corporate relocations

This reform brings greater cost visibility and predictability for companies and relocating employees.

• Fewer surprises: Although tenant brokers in NYC can still charge up to 15% of annual rent, our agreements with partner brokers cap those fees at one month’s rent maximum.
• This allows companies to budget with more confidence.
• Some employers who previously opted not to cover broker fees — due to unpredictable amounts — can now reconsider offering this benefit, as costs have returned to a reasonable and consistent level.

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🗺️ What about the rest of the U.S.?

This legislation applies only to New York City.
In most other U.S. cities:

• Tenants are typically not required to pay broker fees.
• Landlords usually cover the cost of brokerage services.
• The rental market is generally more transparent and tenant-friendly outside NYC.

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📣 Why it matters

The FARE Act brings New York’s rental rules closer to national norms, creating a more transparent and balanced environment for tenants.
For companies, this translates to:

• Simpler relocation packages
• Fewer unexpected costs
• Better planning and employee support

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📩 Need guidance on relocation costs in New York or across the U.S.?

We help HR teams and mobility managers navigate complex local regulations, manage budgets, and ensure smooth employee transitions.
Get in touch to find out how we can support your U.S. relocation strategy — from cost planning to on-the-ground delivery.