What Brooklyn Renters and Landlords Need to Know About NYC’s New Broker Fee Law

In a major shake-up for the NYC rental market, a new broker fee law is changing who pays—and how much—when it comes to securing an apartment. Whether you're renting a brownstone in Park Slope, a luxury unit in Downtown Brooklyn, or a charming walk-up in Boerum Hill, understanding this new rule is crucial before signing a lease.

So, What’s Changed?

As of June 2025, a New York State appeals court ruled that tenants can no longer be required to pay the broker’s fee when the real estate agent is hired by the landlord. This decision reinstates guidance originally issued in 2020 by the Department of State (DOS), which had been paused during legal battles with the real estate industry.

In simple terms:

If a landlord hires a real estate agent to list and lease their apartment, the landlord—not the tenant—is now responsible for paying that agent’s broker fee.

What This Means for Renters in Brooklyn

For renters searching in popular neighborhoods like Cobble Hill, Carroll Gardens, and Park Slope, this is a big deal. Broker fees often range from one month’s rent to 15% of the annual rent—so for a $4,000/month apartment in Downtown Brooklyn, that could mean savings of $6,000 or more.

This change levels the playing field for renters, especially in competitive Brooklyn neighborhoods where demand is high and inventory is limited.

However, it’s important to note:

• If a renter hires an agent independently to help them find an apartment, the renter may still be responsible for that broker’s fee.

• Some landlords may adjust monthly rent prices to offset their added costs—something to keep an eye on, especially in high-demand areas like Boerum Hill and Carroll Gardens.

What Brooklyn Landlords Should Know

If you own property in neighborhoods like Park Slope or Cobble Hill, and list your rental through a broker, you will now be expected to pay the commission directly. This could mean re-evaluating your rental strategy, especially if you’ve previously relied on tenants to cover this cost.

That said, hiring a knowledgeable Brooklyn real estate agent still offers clear advantages:

• Faster lease-ups

• Professional marketing

• Stronger tenant vetting

• Compliance with NYC’s ever-evolving housing laws

Landlords who manage luxury buildings in Downtown Brooklyn or boutique rentals in Boerum Hill may also consider building the cost of broker fees into longer-term rental strategies, such as offering concessions or slightly increasing monthly rent to maintain margins.

Impact on the Brooklyn Rental Market

While it’s still early, experts expect this new rule to shift behavior across the borough:

• Tenants may be more willing to move, now that upfront costs are reduced.

• Landlords may become more selective with listings and tenant screening.

• DIY listings (For Rent By Owner) could become more common, especially in lower-rent segments of Carroll Gardens or Windsor Terrace.

Still, working with a seasoned Brooklyn rental agent remains a smart move—for both landlords and renters navigating competitive markets.

Final Thoughts

Brooklyn’s rental market is always evolving, and the recent broker fee law is another example of how fast things can change. Whether you're a landlord in Cobble Hill looking to fill a unit, or a renter hoping to lock down a sunny one-bedroom near Prospect Park, staying informed is key.

If you have questions about how this law affects your rental search—or your investment property—I’m here to help. Let’s talk through your options and find the best path forward in today’s Brooklyn real estate market.