A major change in New York City’s rental market has officially taken effect today, bringing much-needed relief to tenants. Starting June 9, 2025, renters in NYC will no longer have to pay broker fees when renting an apartment if the landlord hired the broker.
This rule is part of a newly enforced law that shifts the financial responsibility from tenants to landlords—something housing advocates have been pushing for years.
This change is expected to save renters thousands of dollars, especially in a city like New York, where broker fees have long been a frustrating and costly part of the rental process.
These fees often range from one month’s rent to 15% of the annual rent, adding a huge upfront cost when moving into a new home.
Until now, many renters had no choice but to pay these fees even if they didn’t seek out the broker themselves.
The landlord would hire a broker to list the apartment, and then the renter—who simply responded to an ad, would still be the one footing the bill. Critics called this unfair, and now, after years of legal battles and confusion, the rule has officially changed.
This policy was originally part of guidance issued in 2019 by the New York Department of State. That guidance stated that tenants should not be required to pay broker fees if the landlord was the one who hired the broker.
However, it was quickly challenged in court by real estate industry groups who argued the guidance was issued improperly and hurt their business model.
After a long legal fight, a judge ruled in 2021 that the state acted outside its authority. But housing advocates didn’t give up. They continued pushing lawmakers to step in and write this rule into law—clearly and officially.
Earlier this year, state lawmakers finally passed legislation as part of the 2025 state budget that directly addressed this issue.
The law stated that brokers working on behalf of landlords must be paid by the landlords, not the tenants. Governor Kathy Hochul signed the budget in April, and the broker fee rule was set to kick in 45 days later—which brings us to today.
Now that the law is in effect, renters can breathe a little easier. If a landlord hires a broker to lease an apartment, the landlord will have to cover the fee. However, if a renter decides to hire a broker on their own—perhaps to help search for listings or negotiate a deal—they would still be responsible for that cost. The law doesn’t ban broker fees altogether; it simply makes sure the person who hires the broker pays them.
This shift could mean a more transparent and fair rental process. For renters, it reduces the financial burden of moving, especially in a city where high rents already stretch household budgets. For landlords, it may mean adjusting their financial planning when listing properties, but supporters of the law say it’s a necessary change to protect tenants from surprise costs.
The law has already started changing how listings appear online. Real estate websites like StreetEasy and Zillow have begun clearly showing whether a listing is “no fee” or if any broker fees apply—and who pays them.
Industry experts are watching closely to see how the rental market responds in the coming months. There are questions about whether landlords will increase rent slightly to make up for the extra cost or whether more landlords will choose to list apartments directly instead of using brokers at all.
But for now, tenant advocates are calling this a big win. They say this law brings fairness to a system that was long tilted in favor of landlords and real estate agents. Renters no longer have to worry about surprise fees they didn’t ask for or agree to.
For New Yorkers searching for their next home, this new law could mean a more affordable and less stressful process—and possibly, more money in their pockets when it matters most.