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NYC First Apartment Guide 2026: The FARE Act, Broker Fees, Guarantors, and Your Tenant Rights — What Every New Renter Must Know

Renting your first apartment in New York City is one of the most consequential financial decisions you’ll make — and it’s filled with traps that cost thousands of dollars if you don’t know the rules. The good news: New York’s tenant protections are among the strongest in the country, and a landmark 2025 law just eliminated one of the city’s most notorious renter rip-offs — the broker fee.

This guide covers what every first-time NYC renter needs to know in 2026: the FARE Act, how fees actually work now, security deposits, guarantors, roommate rights, and the resources that protect you from your first walk-through to your first lease renewal.

Who This Helps

Recent college graduates, young professionals relocating to NYC, students moving off-campus, and anyone renting their first NYC apartment. Also useful for parents co-signing leases and people who’ve moved apartments but never knew all their rights.

The FARE Act: No More Broker Fees — Unless You Hire the Broker

The Fairness in Apartment Rental Expenses (FARE) Act took effect on June 11, 2025, and it fundamentally changed NYC’s rental market. Before the FARE Act, landlords could require tenants to pay the broker fee even when the landlord hired the broker — a practice that cost renters an average of $10,000–$15,000 upfront just to move in.

Under the FARE Act, according to the NYC Department of Consumer and Worker Protection (DCWP):

  • A landlord or landlord’s agent cannot impose a broker fee on a tenant for a broker the landlord hired. Period.
  • You only pay a broker fee if you personally choose to hire a tenant’s broker to help you apartment hunt
  • If you hire your own broker, the typical fee is around 7.5% of the first year’s annual rent — but only if you agreed to hire that broker
  • No one can make renting an apartment conditional on you hiring a broker
  • Before you sign any lease, the landlord must give you a signed, itemized written disclosure of all fees

What this means in practice: Most NYC renters in 2026 should not be paying a broker fee. If a landlord or building agent tells you that you must pay one, that’s a potential FARE Act violation. You can report it to DCWP at 311 or nyc.gov/dca/about/FAQ-Broker-Fees.

One nuance: many landlords responded to the FARE Act by slightly raising advertised rents on no-fee listings. A StreetEasy analysis found the average rent increase on no-fee listings was about 5.3% — but for most renters, this is still far cheaper than paying a lump-sum broker fee upfront.

Fees You Can and Can’t Be Charged

NYC and New York State law strictly cap what landlords and building owners can charge you before and when you move in:

  • Credit and background check fee: Capped at $20 total under New York State law. If a landlord charges more, it’s illegal.
  • Security deposit: For most regulated and market-rate apartments, capped at one month’s rent under the Housing Stability and Tenant Protection Act (HSTPA) of 2019. A landlord cannot demand two or three months upfront as a deposit.
  • First and last month’s rent: Many landlords ask for first month plus security deposit at signing. Some also request the last month’s rent — this is legal, but the total cannot exceed what’s permitted under your lease and applicable rent regulations.
  • Move-in/admin fees: There is no legal basis for most “administrative” or “move-in” fees charged by landlords. If you see one, ask what it’s for and consult DCWP or a tenant advocate.

Guarantors: When You Need One and What to Know

Most NYC landlords require proof that your income is at least 40–45 times the monthly rent. For a $2,500/month apartment, that means you need to show income of $100,000–$112,500 per year. For many recent graduates or newly arrived professionals, that’s a barrier — which is where a guarantor comes in.

A guarantor is a financially stable third party (often a parent) who signs the lease alongside you and agrees to cover rent and damages if you can’t. Guarantors typically need income of 80 times the monthly rent ($200,000 for a $2,500 apartment). The guarantor does not live in the apartment and has no occupancy rights.

If you don’t have a family member who qualifies, institutional guarantor services exist as alternatives:

  • Insurent (insurent.com): A tenant guarantee service that charges a one-time, non-refundable fee — typically 65–85% of one month’s rent for U.S. citizens with good credit, and 95–110% for non-U.S. citizens or those without domestic credit history. Only works in pre-enrolled buildings.
  • The Guarantors (theguarantors.com): Similar service; often accepted by larger buildings
  • Rhino (sayrhino.com): An insurance-based alternative to paying a full security deposit upfront; check if your building accepts it

Always ask the landlord upfront whether they accept institutional guarantors — not all buildings do, and finding out at the last minute wastes everyone’s time.

Your Roommate Rights Under New York Law

New York’s Roommate Law (Real Property Law Section 235-f) gives every tenant the legal right to share their apartment with at least one unrelated person — even if the lease says otherwise. You must inform your landlord, but the landlord cannot unreasonably refuse.

Key roommate rules:

  • You can have at least one unrelated roommate plus that person’s dependent children
  • Occupancy limits still apply — total occupants cannot exceed what the apartment can safely house
  • Your roommate is not automatically a tenant and does not have lease rights unless added to the lease
  • Get a written roommate agreement: Cover rent responsibilities, shared bills, what happens if someone moves out, and how security deposit is divided. There’s no legal requirement for one, but it protects everyone
  • Your roommate’s name should be disclosed to your landlord in writing; send it certified mail and keep a copy

Lease Basics Every First-Timer Should Know

New York law requires leases to be written in plain language and prohibits clauses that waive your fundamental tenant rights. Even if a lease says otherwise, it cannot legally strip you of:

  • The right to a livable apartment (heat, hot water, no pests, structurally sound)
  • Protection against illegal lockouts — only a court order can remove a tenant
  • Your security deposit back within 14 days of moving out (with an itemized statement of any deductions)
  • The right to organize with neighbors and contact housing authorities without retaliation

Before signing, read the lease completely. Pay special attention to: lease term length, rent amount and how increases are handled, subletting rules, pet policy, when and how the landlord can enter, and who pays for which utilities.

Affordable Housing Lottery: Your Parallel Track

Don’t ignore the NYC affordable housing lottery — it’s free to apply and people do win. NYC Housing Connect at housingconnect.nyc.gov lists all open lotteries for income-restricted apartments across the five boroughs. Eligibility is based on household size and income relative to the Area Median Income (AMI). Even if you earn a decent salary, many lotteries serve households earning up to 130% AMI — which covers a wide range of young professional incomes.

Apply for every lottery you qualify for. The odds per lottery are long, but consistent applications over time significantly increase your chances. Several major lotteries with deadlines in May and June 2026 are currently open — check Housing Connect now.

How to Take Action

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