Blogs

New York City FARE Act 2025: Impacts on Global Mobility, HR, and Talent Teams

It is fair to say that, in New York City, nothing about renting an apartment comes easy. Every few years, new laws arrive to shake things up. In June 2025, the city took a big swing at making things fairer for renters. The Fairness in Apartment Rental Expenses (FARE) Act is now law, and, for the first time in a generation, it changes who pays for what when you rent a place. But does it really make the process simpler? Perhaps.

In NYC, the rules for who pays broker fees just changed for good.

If you’re thinking about moving, hiring, or just trying to keep up, this article will walk you through the new system. We’ll look at what the FARE Act means, how it impacts prices and processes, and what businesses like EWS Limited should consider when supporting employee relocations.

So, what is the fare act?

The FARE Act officially went into effect on June 11, 2025. In plain terms, this law says that whoever hires a landlord’s real estate agent must pay that agent’s fee. It turns a decades-old system on its head. Before, renters almost always paid a broker fee, even when the broker worked for the landlord, not for them (AP, 2024). Yes, that stung.

Now, the onus is clear: If the landlord uses an agent to rent out a property, the landlord pays the agent. If you, as a renter, hire a broker to find you an apartment, then you foot that bill. But if you go it alone—or snag a so-called “no-fee” listing—you save hundreds or even thousands of dollars upfront.

• Old rule: Broker fees often paid by renters, even if the broker works for the landlord
• New rule: The person who hires the agent, pays the agent’s fee

That sounds clear-cut, but as you might guess, in practice, the city’s rental world is rarely so transparent.

Transparency, with a twist

The goal of the FARE Act is to ease the financial weight on renters. Legally, it’s about putting the cost where it belongs: with whoever uses the service. According to the New York City Council’s summary, more than half of NYC households spend over 30% of their income on rent. A typical broker fee hovered near 15% of your annual rent. For a $3,000/month apartment, that’s $5,400 upfront. No wonder lawmakers stepped in.

Renters just caught a break—but it’s complicated.

One simple benefit: Listings and contracts now must clearly state all related charges. No awkward surprises at lease signing, no week-long anxiety about hidden costs. If there’s a fee, it’s there in writing.

Yet, if you think this means renters automatically pay less, think again. Many rental experts warn: landlords are rarely eager to lose money.

The landlord’s reaction: shifting costs and adjusting rents

When you force a change this sudden, every player in the market responds. Most landlords, after all, are running businesses. If they now have to pay their own agents instead of charging tenants, they look for another way to keep profits steady.

One quick fix? Increase monthly rent. Early data and reporting suggest that, within days of the FARE Act taking effect, a rash of property owners quietly adjusted asking prices upward. In some cases, those increases almost matched what used to be broker fees (AP, 2024).

Is this legal? Yes, as long as the rent hike abides by local rent control or stabilization laws. So, while initial move-in costs can drop, the lifetime cost of living in the apartment might not shift much. For many, it feels a bit like squeezing a balloon—press on one side, and the air just bulges somewhere else.

You save upfront, but watch out for creeping rents.

For rent-stabilized apartments, recent changes matter a lot. The NYC Rent Guidelines Board set increases of 2.75% for one-year leases and 5.25% for two-year leases, effective October 2024 to September 2025 (NYC Rent Guidelines Board). For everyone else, landlords have more freedom to set rents as they wish.

How listings might change—and who benefits

For years, many landlords preferred to use agents, since renters picked up the tab. Now, cost-conscious landlords may choose to list properties themselves. Or, some might use agents sparingly, only when they truly need help to find tenants.

This opens doors. Suddenly, renters searching on their own may spot more direct-from-owner listings. Also, corporate housing managers and mobility teams will notice a wider range of options for employees who want to avoid fees or work with relocation lump sums. In short, the pool of “no-fee” housing is almost certain to grow.

• More owner-listed apartments could appear on the market
• No-fee apartments may be more common in popular neighborhoods
• Employees with relocation stipends can stretch their funds further

The tenant’s perspective: less pressure, but new confusion

On paper, the rules seem fair. Less burden on renters equals more people able to move. In reality, the change introduces a few sticking points.

• Who pays fees now? If you, as a renter, contact a landlord’s agent on your own, do you pay, or does the landlord? The answer matters, and it should be spelled out in the listing. But not everyone reads the fine print.
• Are “no-fee listings” truly fee-free? Sometimes, landlords build part of the agent’s cost into the rent. Others find legal ways to redirect the expense. Clarity for renters is better, but not perfect.
• Do renters need brokers at all? Many people, especially those arriving from overseas or from less regulated markets, want guidance through the web of NYC rental rules. Skipping a broker saves money but may cost precious time, or worse, can lead to mistakes.

For businesses relocating talent into NYC, the FARE Act means evaluating relocation packages carefully. Some companies, especially those working with EWS Limited, still cover broker fees as part of their support, knowing it helps staff focus on their move, not the paperwork.

Some clarity, but not an end to paperwork headaches.

Relocation packages and employee moves

Here’s a practical question. If your company brings in talent from out of town or overseas, what’s the best way to support them under the new law?

Traditional relocation perks—like full broker fee coverage—may now mean something different. If the broker is engaged by the hiring company on behalf of the employee, the company pays the fee. But if an employee chooses a broker independently, understanding the boundary between personal and corporate expense gets a bit murkier.

Some relocation packages are shifting to straightforward lump sum models: hand the employee a set amount and let them find the best avenue. Others keep up with the old system, paying any qualified professional costs along the way. The key, as the team at EWS Limited often reminds clients, is to ensure transparency, good communication, and up-to-date knowledge of the local landscape.

Impacts on global mobility, hr, and talent teams

For global mobility or HR managers—especially those at Series B/C tech firms and stable IT companies—the FARE Act brings fresh opportunities and a few headaches. The process of moving international or out-of-state staff just became less about surprise fees, and more about finding value in a crowded market.

• There is a chance to negotiate with landlords for “no-fee” deals, rather than defaulting to traditional broker-led searches.
• Upfront clarity can help staff plan transitions, which makes hiring feel less risky.
• The market could move toward higher base rents, but more flexibility in move-in timing or property upgrades.
• Each case may need tailored relocation policies, as staff may have very different needs.

For companies seeking guidance, projects like EWS Limited can serve as a bridge between chaotic local laws and seamless integration for new hires. Similar practical advice can be found on topics like hiring in the age of hybrid work, which helps HR teams cope with more remote placements and distributed talent pools.

Challenges for renters without brokers

Some employees—especially those from overseas or less regulated cities—may be tempted to skip brokers entirely. In theory, this now feels safer. But NYC, with its quirky rules, still presents pitfalls.

• Renters may miss application deadlines or key documentation steps.
• Understanding lease clauses, especially for sublets or rent-regulated properties, can be a headache.
• Dealing directly with landlords may mean less negotiation leverage.
• The “no-fee” label sometimes mainly means “fee paid another way.”

Destination service providers (DSPs) and third-party consultants are starting to update their guides, checklists, and one-on-one coaching. They may add more support for searching, paperwork, and even conflict resolution.

What does it all mean for businesses and workforce solutions?

Organizations helping people move to NYC, especially those operating internationally, need fresh playbooks for the changed market. For those working with EWS Limited, for example, this means robust information sharing, clear policies, and, when possible, pre-arranged housing solutions with clearly stated costs.

As destination service providers adapt, they might:

• Increase direct landlord partnerships to access no-fee listings
• Offer guided apartment tours without automatic broker involvement
• Provide detailed budgets so clients know not just cost, but timing and cashflow needs
• Expand legal and documentation help for international staff navigating NYC’s timed application system
• Push for even clearer offer and lease disclosures, per the FARE Act’s intent

Support for assignees now means more guidance, not just expense coverage.

The trend aligns with recommendations on hiring a diverse team and recruiter best practices: put clarity, flexibility, and individual needs at the core of every move. Although the FARE Act covers rental fees, the rest of the relocation puzzle is still there—moving, onboarding, even virtual onboarding and streamlined interviews.

The legal ins and outs: what the textbooks say

Under NYC rules, the law strictly forbids landlord brokers from charging tenants any commission unless the tenant directly hires them. All associated costs must be clear up front, both in online listings and physical contracts. Any violations can bring steep civil fines.

Also, the law is retroactive up to a point: If you signed your lease before June 11, 2025, but hadn’t paid the fee yet, you’re now protected. This applies even if your contract says otherwise. In other words, if you haven’t paid, you don’t have to (NYC.gov).

Still, whenever laws change, there are edge cases and loopholes. For international assignees, those details matter. That’s why most mobility managers still recommend careful reading of all lease agreements, and often work with experts at projects like EWS Limited for up-to-date guidance.

Equity, accessibility, and shifting market strategies

The FARE Act came out of a citywide push to address a stubborn reality: NYC’s high rents and fees often froze out middle-income and first-time renters. The hope is that this law opens the field to more people and discourages the kind of hidden costs that used to make apartment shopping a minefield.

• Low- and middle-income renters should see a little relief upfront
• Transparency helps employees negotiate better relocation deals
• Landlords may get creative with cost shifting, so renters must stay alert
• Companies sending staff to NYC need sharper, up-to-date market advice

Does that mean everyone wins? Maybe not overnight. Markets, especially in a city as complex as New York, take time to adjust. There will always be some imbalance between landlords and tenants—but this, perhaps, tilts it a bit back toward fairness.

Wrapping up: steps for renters, businesses, and relocation teams

NYC’s rental market has never been an easy place to find simple answers. The FARE Act gives renters a level playing field on agent fees, but the rest of the process? It’s still a labyrinth of listings, rents, negotiation, and paperwork.

• If you’re an individual renter, take the time to review every listing, ask sellers and agents direct questions about fees, and know your rights under the new law.
• For HR, global mobility, and relocation teams, stay nimble. Update your relocation policies, prepare your staff for both upfront savings and possible long-term rent changes, and keep a close line of communication with reliable local partners.
• For destination service providers and consultants, it’s a chance to redesign services to add real value: with extra guidance, more direct listings, and sharper cost breakdowns for every relocating employee.

EWS Limited continues to help businesses, HR teams, and talent managers turn New York’s ever-changing market into opportunity instead of chaos. If you’re planning an NYC move—personally or for your team—discover how our solutions for mobility, payroll, and compliance can take the unknowns out of your next step.

Frequently asked questions

What are the new NYC rental laws?

The Fairness in Apartment Rental Expenses (FARE) Act changed how broker fees are handled in NYC as of June 11, 2025. Now, only the person who hires an agent pays the agent’s fee; landlords hiring brokers to rent out their properties must cover those costs themselves. Listings must spell out all fees clearly, and landlords can’t pass their agent’s fees to tenants as was commonly done before. Violating these rules can bring fines. For more on the specifics, review information from NYC’s Department of Consumer and Worker Protection on broker fees.

How can I find no-fee apartments?

No-fee apartments are usually listed directly by landlords or through agents representing the landlord (whose fee is now paid by the landlord, not the renter). With the FARE Act in effect, more no-fee listings are expected. You can search on popular listing sites, property management portals, or through destination service providers if you are relocating for work. Always confirm in writing whether a listing is truly fee-free before proceeding. As the landscape of listings shifts, guidance from companies like EWS Limited and updated DSP support can help renters spot legitimate no-fee options.

Is it worth it to use a broker?

It depends on your needs and how comfortable you are managing paperwork, negotiations, and lease reviews on your own. Brokers bring expertise, help with documentation, and can speed up the process, especially if you are new to NYC or have special rental circumstances (like international moves). With the FARE Act, you only pay a broker if you actually hire them to represent you. Many companies relocating staff to New York still include broker fee coverage for this reason. If you value convenience and want extra protection against mistakes, it can be worth it.

How much are average NYC rents now?

Average rents in NYC have continued to rise due to high demand and aftereffects of the pandemic years. As of 2025, median rents for a one-bedroom in Manhattan are typically between $4,000 and $4,500 per month, with Brooklyn and Queens averaging slightly less. The FARE Act may reduce upfront move-in costs, but monthly rents have increased in some cases as landlords offset broker fees with higher rents. Rent-stabilized apartments saw adjustments of 2.75% for one-year and 5.25% for two-year leases, according to the latest Rent Guidelines Board order.

Where to find the best rental deals?

The best deals are usually found in neighborhoods just outside the most popular Manhattan centers, such as northern Manhattan, parts of Queens, and Brooklyn beyond hip central districts. Look for owner-listed no-fee apartments, monitor new construction for concessions, and connect with local relocation consultants or HR-supported DSPs for off-market opportunities. Also, flexible move-in timing or longer leases can sometimes win discounts. Staying informed through reliable industry partners like EWS Limited can provide early access and honest advice on deals as the market changes.