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Free NYC compliance tool

FARE Act Broker Fee Calculator

New York City’s FARE Act (Fairness in Apartment Rental Expenses), effective June 11, 2025, changed who pays the broker fee: the party that hires the broker pays, and the statutory presumption is that the landlord pays. A landlord-hired broker may not charge the tenant a fee.

Enter the rent and fee terms to see the total fee and the FARE Act posture — including when a signed written tenant-broker agreement is required. Built for NYC brokers and landlords structuring a compliant fee.

The NYC convention is often 15% of annual rent.

The statutory presumption is landlord-paid.

Broker fee

Total broker fee

15% of $42,000.00 annual rent

$6,300.00

Landlord pays

$6,300.00

Tenant pays

$0.00

Landlord-paid — the default. Under the NYC FARE Act (effective 2025-06-11), the party that hires the broker pays the fee, and the statutory presumption is that the landlord pays. No written tenant-broker agreement is required for this posture.

General information, not legal advice. These calculators are educational estimates based on published NYC/NYS figures and may not reflect the latest orders, your specific lease, or building-specific facts. Always verify with NYS HCR / NYC DHCR (and counsel where needed) before acting.

Frequently asked

Who pays the broker fee under the FARE Act?
The party that hires the broker. The statutory presumption is that the landlord pays — a landlord-hired broker cannot pass the fee to the tenant. A tenant only pays when the tenant separately hired the broker.
Can a tenant ever pay the broker fee?
Yes, but only where the tenant independently hired the broker and there is a signed written tenant-broker agreement documenting it. Absent that agreement, the fee is presumed landlord-paid.
How is a NYC broker fee usually calculated?
Commonly as a percentage of the annual rent (often 15%), or as a number of months’ rent (e.g. one month). The calculator supports a percentage, a months-of-rent figure, or a flat amount.
When did the FARE Act take effect?
June 11, 2025. It also requires up-front disclosure of all fees a prospective tenant must pay before signing.

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