New York City’s FARE Act, which took effect on June 11, was designed to spare renters from paying broker fees when they didn’t hire the broker themselves. While the law has helped many avoid upfront charges, a sharp increase in rent prices and ongoing reports of brokers demanding illegal fees are raising red flags across the city.
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Broker Fees Banned by Law
The Fairness in Apartment Rental Expenses (FARE) Act prevents brokers from charging tenants who didn’t enlist their services. Previously, renters often paid thousands in fees to brokers hired by landlords. Advocates celebrated the change, calling it a major step toward affordability. Signs reading “End forced broker fees” and “Support the FARE Act” were seen throughout the city.
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Rent Prices Surge Unexpectedly
An analysis by The New York Times using data from 1.3 million StreetEasy listings revealed a significant rent increase in the same week the law took effect. Although rents usually rise in summer, June saw a spike that exceeded typical seasonal trends, with many listings increasing by hundreds of dollars per month…