The months-long debate over the New York City Council’s Fairness in Apartment Rental Expenses (FARE) Act has reached a fever pitch as the bill moves to a vote this week. The FARE Act would be a win for transparency, mobility, and affordability in New York, ensuring that agents are fairly compensated by the parties that hired them, rather than overburdening tenants with the cost of services they didn’t hire. The bill brings New York City’s rental market in line with nearly every other city in the country.
The legislation will lower upfront costs, helping renters and unlock the supply of apartments
The FARE Act is a change renters want and need. The average New Yorker pays nearly $13,000 in upfront fees to move, record-high costs that keep people from renting altogether. StreetEasy data shows that more than three-quarters of NYC renters (76%) agree that broker fees are a barrier to finding rental apartments, and three in five (60%) say those fees prevent them from moving into another apartment.
Reducing initial costs and enabling more renters to move will expand the inventory for all industry participants — a lack of which is currently hurting renters and agents alike. According to our data, 85% of NYC rental agents report that the housing shortage has impacted their business.
Brokers will still be paid for their work with the new law. Brokers provide a valuable service to landlords and renters. Under the FARE Act, landlords could still hire a broker to find qualified rental applicants, and renters could still hire a broker to help them find an apartment. In either scenario, brokers are paid for their work.
Today, many agents aren’t getting paid for their services. They often spend more than 10 hours marketing a rental listing and report the time (66%) and financial cost (60%) it takes to market units with no guarantee of payment as top pain points. This bill would ensure agents aren’t working for free.
The FARE Act would also introduce more transparency around fees, which is in the best interest of renters, landlords and agents. It would require every listing to clearly disclose any fee to be paid by the prospective tenant, helping renters understand what they can afford from the beginning without any surprises later. StreetEasy and Zillow will work with agents and landlords to make that information easily accessible on their listings, which can help them connect to qualified tenants more quickly.
This bill will also give renters more options. Today, most no-fee apartments are in luxury buildings that are out of reach for many New Yorkers. By reducing mandatory upfront costs, more renters can afford to move, creating more opportunity for the first time in decades. And while paying a fee would no longer be a condition to signing a lease, renters would still have the option to enlist a broker for help finding a unit.
With this new system, there will be open and transparent access to real estate information for everyone. Opponents argue that rental listings will be removed from the public market if the FARE Act passes, making it even more difficult for renters to find a place to live. However, when listings are withheld from a public market, everyone loses. Agents and landlords get less exposure for their listings, and consumers cannot access the full range of housing options available to them.
If this bill passes, rental listings will still appear on public platforms like StreetEasy and Zillow the same way they do today, regardless of whether the unit is advertised by a broker, a landlord, or an owner. That is what our platforms were built on — open access and transparency in the market and accurate, trustworthy listings and information.
Passing the FARE Act would raise the bar for the real estate industry, create opportunities to streamline the renting process, and ensure that agents get paid for their work.
As the most trusted NYC real estate marketplace, we take our responsibility seriously to help renters, agents, and landlords navigate the evolving housing market. We are committed to helping the real estate industry navigate the transition should the bill pass.
Paired with other efforts to increase housing supply, this legislation will allow the hundreds of thousands of New Yorkers who can’t afford to stay or move within NYC to finally do so — making the housing market better for everyone.
Burton is the general manager of StreetEasy and vice president of Zillow.
