A major shift has taken effect in New York City’s rental market, and mobility professionals are watching closely to see how it may influence relocation dynamics moving forward. The Fairness in Apartment Rental Expenses (FARE) Act, now in force as of 11 June 2025, changes a long-standing industry norm: The landlord’s agent can no longer be paid out of the commission the tenant pays. Whoever hires the agent must pay the agent.
While the full impact of the law is still unfolding, many in the talent mobility space are beginning to assess how this change may affect relocating employees, corporate relocation budgets, and the broader experience of moving into one of the country’s most competitive rental markets.
“The FARE Act marks a pivotal shift in New York City’s rental landscape,” says Alexa Bronfman, director of global business development at NYC Navigator. “Previously, even renters who chose not to work with a broker could still be required to pay the broker fees charged by the landlord’s agent. When combined with other upfront costs—such as the first month’s rent, a one-month security deposit, and possible guarantor fees—these charges posed a significant financial hurdle for many prospective tenants. The FARE Act has eased this burden by providing meaningful upfront relief and enhancing transparency around the true costs of renting a unit.”
That transparency is seen by many as a bright spot in the policy shift.
“The new law also requires that landlords disclose all fees,” says Christine Haney, executive vice president of global relocation and referral services at Douglas Elliman. “I think this is helpful—the tenant will know exactly what is needed to lease an apartment.”
The Value of Representation in a Complex Market
Yet for relocating employees, particularly those new to the city or lacking local support, this clarity doesn’t necessarily translate into ease.
“The rental application process, requirements, and timing have always been more involved in New York City,” Haney says. “For an unrepresented or inexperienced tenant to manage this process on their own was and will continue to be difficult. This is not new.”
That’s why many companies are expected to maintain broker fee coverage as part of their relocation packages, even as the law shifts the baseline.
“Corporate clients who have traditionally offered their transferees broker fee coverage are likely to maintain this valuable benefit,” Bronfman says. “Having dedicated representation remains critically important during the relocation process. A qualified broker can source listings, schedule property viewings, provide neighborhood insights, negotiate favorable terms, and review lease agreements, ensuring the transferee’s interests are fully protected.”
Haney agrees, noting that the value of representation remains high, especially in the eyes of seasoned corporate relocation teams.
“Those clients who have employees who regularly move in and out of New York City have a better understanding of the value a tenant’s agent brings to the table and therefore understand the benefit to engaging an agent and paying for their service.”
Still, some cost containment may be on the horizon.
“I assume some corporate clients will limit the amount of money they will cover for a commission,” Haney says. “But others are not making any changes at all. I think it still holds true that the need for an employee to relocate to fill a position will drive what a company is willing to cover.”
Rent Hikes and Landlord Adjustments
At the landlord level, the most immediate response to the new law has been predictable: rent increases.
“We are already seeing landlords raise rent to absorb the broker fee since they can no longer pass it on to the tenant,” Bronfman says.
Haney echoes this observation: “We have seen some landlords increase their rent to cover the commission, transferring the cost of the commission to the tenant over the term of the lease.”
The shift could also bring new dynamics to inventory and landlord behavior.
“You may have some landlords who opt to list on their own,” Haney says. “While many are well-versed with the laws, the smaller landlords or private landlords may not be aware of them.”
That shift in listing practices—combined with more transparent pricing—could make the New York City rental market feel more accessible for younger talent or those receiving lump sums.
“For employees who do not receive a broker fee benefit, and for self-pay moves, the FARE Act significantly increases the amount of inventory to choose from, since all apartments are effectively ‘no fee’ now,” Bronfman says. “If you have the time and are willing to do the research and administrative work, you will experience great cost savings. This will tremendously benefit new hire analysts and associates who often receive a lump sum as relocation assistance.”
A New Role for DSPs and Corporate Relocation Programs
This new reality also invites destination service providers (DSPs) to reevaluate their offerings.
“DSPs have an opportunity to get creative with their service offerings to provide greater support to incoming employees who do not receive a broker fee benefit,” Bronfman says. “Area orientations, lease review services, etc., have become increasingly important.”
Even with the shift in policy, relocation professionals like Haney don’t see their core role changing.
“How we are engaged has not changed,” she says. “We still have service levels we must adhere to and, most importantly, an [employee] we need to help. So, it has not changed except for the additional discussion about the fee agreement.”
As the lawsuit challenging the FARE Act continues to make its way through the courts, the relocation industry is already adapting. Whether this change sets a precedent for other major markets remains to be seen, but for now, companies relocating talent into New York will need to stay nimble, informed, and proactive in helping their people navigate this evolving landscape.