Landlords in NYC Use Deceptive Tactics to Circumvent Rent Law

Recent reports reveal that certain landlords in New York City are employing sneaky strategies to bypass regulations banning broker fees for renters.Prospective tenants have encountered thousands of dollars in hidden charges labeled as “management” or “technology” fees, which closely resemble the traditional broker fees paid in the past.

Many renters have been pressured to sign documents claiming they personally hired brokers, even when this wasn’t true. These tactics appear to exploit loopholes in the law, allowing landlords to recoup fees indirectly. One listing even explicitly states that applicants must hire a specific broker to apply, charging a fee despite the law prohibiting such costs from being passed onto tenants.

The law, known as the FARE (Fairness in Apartment Rental Expenses) Act, went into effect on June 11, and prohibits landlords from passing broker fees onto tenants. However, the city’s Department of Consumer and Worker Protection reports receiving nearly 300 complaints about violations since then.

Examples include listings that demand a “service/broker fee” or instruct applicants to hire certain brokers, effectively sidestepping the law. One Zillow listing in Bayside, Queens explicitly states that the applicant must hire a designated broker, and a Brooklyn listing breaks down a total upfront cost—including a significant broker fee—that conflicts with legal standards.

Online forums such as Reddit have also documented tenants’ experiences with schemes to evade the law, with some landlords encouraging tenants to pay hefty fees upfront or for services they did not request or agree to. Despite the law’s protections, some agents are boldly asking for large sums, like a $3,500 broker fee, even though legal disclaimers specify that tenants shouldn’t be charged if they didn’t hire a broker.

Real estate authorities advise tenants to stay informed about their rights, take screenshots, save links, and report violations. City officials urge anyone who encounters illegal fees to report them via official channels or call 311. As the housing market faces adjustments, some landlords are also raising rents to offset these hidden costs, adding further strain for renters.