The NYC FARE Act and New York’s Rental Fee Caps, Explained
Since June 11, 2025, a landlord’s broker cannot charge NYC tenants. What the FARE Act requires, plus New York’s $20 screening fee and late-fee caps.
By Seayora Editorial Team · Published · Facts checked · 3 min read
Short answer: Under New York City’s FARE Act, in effect since June 11, 2025, a broker who represents the landlord, including one who lists the apartment with the landlord’s permission, may not charge the tenant a fee. Every fee a tenant must pay has to be disclosed in the listing and in a signed itemized disclosure before the lease. Statewide, New York caps the screening fee at $20, a late fee at $50 or 5% of rent, and the deposit at one month.
Key takeaways
- A tenant may still hire and pay their own broker; nobody may require them to.
- A listing agent is presumed to act with the landlord’s permission, and the landlord is liable for the agent’s fee.
- The signed fee disclosure must be kept for three years and a copy given to the tenant.
- Statewide, no fee may be charged before or at the start of a tenancy except those the law allows.
What does the FARE Act prohibit?
The Fairness in Apartment Rental Expenses Act, Local Law 119 of 2024, added Admin. Code §§ 20-699.20 to 20-699.24. A landlord’s agent may not charge a prospective tenant a fee, and that includes a listing agent who publishes the listing with the landlord’s permission, which the law presumes. The landlord is liable if its agent or the listing agent charges the tenant. No one may condition renting an apartment on the tenant hiring a particular broker or any broker, including a dual agent.
What must be disclosed?
- Every listing must clearly and conspicuously disclose every fee a tenant must pay to rent the apartment, and may not include an unlawful broker fee.
- Before the lease is signed, the landlord or its agent must give the tenant an itemized written disclosure of every fee payable to the landlord or anyone acting at the landlord’s direction, with a description of each.
- The tenant signs the disclosure before signing the lease; the landlord keeps it for three years and gives the tenant a copy.
The Department of Consumer and Worker Protection enforces the law, can seek civil penalties and restitution of unlawful fees, and takes complaints online (DCWP FARE Act FAQ).
Which fees does New York State allow?
Since 2019, New York has barred any payment, fee or charge before or at the start of a tenancy except those a statute allows and a background and credit check fee (Real Property Law § 238-a).
| Charge | Limit | Law |
|---|---|---|
| Background and credit check | Actual cost or $20, whichever is less; nothing if the applicant provides a check from the past 30 days | Real Property Law § 238-a(1)(b) |
| Late fee | Only after rent is 5 days late; no more than $50 or 5% of monthly rent, whichever is less | Real Property Law § 238-a(2) |
| Security deposit | No more than one month’s rent | General Obligations Law § 7-108 |
| Broker fee from the landlord’s agent (NYC) | Not allowed | NYC Admin. Code § 20-699.21 |
See General Obligations Law § 7-108 for the deposit rules, including the 14-day return deadline after the tenant leaves. Deposit deadlines for every state are in our security deposit return answers.
Frequently asked questions
Can a tenant still pay a broker in New York City?
Yes, if the tenant chooses to hire their own broker to find an apartment. A landlord’s agent or listing agent may not charge the tenant, and no one may require the tenant to hire a broker.
Can I charge an application fee in New York?
Only the actual cost of the background and credit check, up to $20, and nothing if the applicant gives you a check from the past 30 days.
Does the FARE Act apply outside New York City?
No. It is a New York City law. The statewide fee limits in Real Property Law § 238-a apply everywhere in New York.
State-by-state rules
- How much can a landlord charge for a rental application fee? — compared across 12 states
Sources
- Fairness in Apartment Rental Expenses (FARE) Act FAQ, NYC Department of Consumer and Worker Protection
- New York Real Property Law § 238-a, New York State Senate
- New York General Obligations Law § 7-108, New York State Senate
How Seayora helps
FARE Act fee disclosure: Checks every fee against the FARE Act and New York’s caps, refuses to send one the law forbids, and keeps the signed copy.
This article is general information, not legal advice. Landlord-tenant law varies by state and city and changes often, so check the current rule for your property and talk to an attorney before acting on a dispute.
How we write and check these guides: editorial standards.
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