But Not the Need for Brokers
Melanie Kishk
As of June 11th, 2025, New York City’s new Fairness in Apartment Rental Expenses (FARE) Act has changed how broker fees are handled. Now landlords are responsible for paying broker fees when they hire an agent to represent their property, unless the tenant chooses to hire a broker for their own representation.
While this may sound like a simple win for tenants, renting in NYC remains complicated. After decades helping people navigate this market, I’ve seen how even well-meaning renters and landlords can run into avoidable problems without proper guidance.
Why Brokers Still Play a Vital Role
Just because you know someone from the community doesn’t mean you know they’re qualified as a tenant. Most homeowners and landlords don’t want to handle the daily work involved in renting a property. Reviewing financial documents, checking credit, contacting prior landlords, and screening applicants requires time, resources, and experience. These steps help ensure that tenants are not only financially qualified but also a good fit for the property.
Brokers handle these responsibilities every day, protecting both landlords and tenants and making sure everyone enters the rental with confidence.
Homeowners, Brokers Are Still
Your Best Protection
For property owners, the FARE Act hasn’t eliminated the need for experienced help. In fact, it makes professional guidance even more important. The true work of renting lies in carefully vetting tenants, identifying red flags, and ensuring long-term stability.
A broker takes on the paperwork, tenant communications, legal compliance, and due diligence that many landlords aren’t equipped to manage alone. In today’s market, trying to handle everything independently often leads to unnecessary risks and costly mistakes.
Navigating NYC’s Screening Requirements
One of the most complicated aspects, especially for property owners with multiple apartments, is staying compliant with New York City’s screening regulations. While brokers like myself do everything possible to properly screen applicants, there is still a legal obligation on the property owner to ensure tenant selection follows all local, state, and federal fair housing laws. For many landlords, navigating these regulations without professional guidance can lead to unintended liabilities.
Representation That Protects Tenants
While tenants aren’t required to hire brokers, many still benefit greatly from representation. From finding the right apartment and preparing strong applications to reviewing lease terms, brokers help renters avoid costly errors that could impact them for years.
For landlords, broker involvement means every applicant has been properly screened. Employment, income, credit, and references are all reviewed carefully, reducing the risk of problems down the line. Stable tenancies protect the property, the building, and the surrounding community.
The FARE Act in Practice
While the law shifts who pays the broker, it hasn’t simplified the rental process. Landlords will continue to rely on brokers to fill vacancies, and many tenants will still seek professional guidance.
The industry expects landlords to raise rents to offset the costs they’re now absorbing. While tenants may save on broker fees upfront, these costs will likely be reflected in higher rent, clearly detailed and amortized over the term of the lease.
NYC’s rental market remains competitive and full of fine print. Without expert help, both tenants and landlords face risks they may not see until it’s too late.
The Bottom Line
The FARE Act brings new rules but doesn’t change the value of thoughtful, experienced guidance. Whether you’re a landlord looking for the right tenant or a renter searching for the right home, working with a broker offers protection, knowledge, and peace of mind. My goal has always been to help both sides navigate this process smoothly, with stability and confidence for the long term. q
This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified professionals regarding specific questions or situations.
Melanie Kishk is a top-performing, full-time real estate broker and the owner of Century 21 MK Realty, proudly serving Brooklyn and its surrounding communities.
