The Fairness in Apartment Rental Expenses Act (FARE Act), effective from June 2023, shifts the responsibility of broker fees from renters to landlords in New York City, effectively reducing the upfront costs of renting. Previously, renters faced substantial financial burdens, with upfront costs averaging nearly $13,000. The FARE Act is expected to reduce these costs by around 41.8%, lowering the average upfront lease expenses significantly. While there are worries that this might lead to higher rents, many economists believe the overall impact on rental prices will be minimal.
The FARE Act significantly shifts broker fee liability from renters to landlords, aiming to alleviate the financial burden on tenants looking to secure housing.
Despite concerns from some critics regarding potential rent increases, economists predict that the overall impact on rental prices will be minimal after the FARE Act's implementation.
The law explicitly states that the party hiring the broker is responsible for the fee, which many believe creates a fairer system for renters in New York City.
The potential for a significant decrease in upfront costs—estimated at a 41.8% reduction—could make renting more accessible to many New Yorkers.
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