Tenants are preparing to say farewell to brokers’ fees as a law takes effect Wednesday requiring whomever hired the agent to pay the fee.
The law, known as the Fairness in Apartment Rental Expenses (FARE) Act — which the City Council passed with a veto-proof majority in November — states that a broker who publishes a listing for a property for rent is to be paid by the landlord and stipulates the disclosure of all fees tenants pay up front.
Landlords often hire brokers to find tenants to rent open apartments, and tenants can also hire brokers to help find them suitable space. But in New York City and Boston, it’s been the custom that even if tenants find an apartment themselves, they may be on the hook to pay the broker fee, which has no cap but typically equals about a month or two of the monthly rent…