Key Takeaways: NYC FARE Act (Fairness in Apartment Rental Expenses) • The FARE Act requires the party who hires the broker to pay the broker fee in NYC rentals • Landlords who use brokers for leasing are now typically responsible for paying commissions • Tenants generally should not be charged broker fees when they did not hire the broker • The law changes cost allocation, not whether brokers are used in rentals • Small landlords may see higher upfront leasing costs when listing through agents • Private rentals without brokers are usually unaffected • “No-fee” listings increase for tenants, but fees still exist on the landlord side • Misunderstanding is common because broker fees are not eliminated, just reassigned Understanding the FARE Act Beyond the Headlines The FARE Act in NYC addresses how broker fees are assigned in residential rentals. Historically, tenants often paid broker fees even when the broker was working for the landlord. That mismatch is what the law is trying to correct. Instead of removing broker fees, the law ties payment responsibility to who actually hires the broker. In most standard rental listings, that means the landlord. What This Means for Small Property Owners For small landlords, especially owners of 2–4 family buildings, the practical change is financial timing. If you list a unit through a broker, you should expect to cover the broker’s commission rather than passing it to the tenant at lease signing. If you handle leasing yourself, or rent without a broker, the law doesn’t really change your process. Bottom Line for Small Property Owners The FARE Act does not remove broker fees from NYC rentals. It shifts them. Small landlords using brokers will see higher upfront leasing costs, while tenants are generally no longer charged fees for brokers they did not hire.

Key Takeaways: Local Law 97 & Small Residential Buildings (Article 321) • Most 2–4 family properties in NYC are NOT subject to Local Law 97 • Buildings under 25,000 square feet are exempt from emissions caps, penalties, and reporting • Article 321 explicitly excludes small residential buildings from compliance requirements • No carbon limits, benchmarking, or annual filings apply to these properties • Owners of 2–4 family homes do not need to retrofit to meet Local Law 97 • “Prescriptive Energy Conservation Measures” are not mandatory for exempt buildings • Measures like pipe insulation or heat timers are optional, not legally required • The law primarily targets large apartment buildings and commercial properties • Small landlords face no fines now or in future compliance periods • Energy upgrades may still reduce operating costs, but are voluntary • Local Law 97 is often misunderstood because most coverage focuses on skyscrapers • For typical 2–4 family owners, Local Law 97 is a non-issue from a legal standpoint ________________________________________ Understanding Local Law 97 Beyond the Headlines Local Law 97 was enacted to reduce carbon emissions from New York City’s largest buildings, which account for the majority of energy use citywide. As a result, most media coverage focuses on high-rise apartments and commercial towers—leaving small property owners confused about whether the law applies to them. For owners of 2–4 family homes, the answer is usually simple: it doesn’t. Under Article 321, residential buildings under 25,000 square feet are exempt from Local Law 97’s emissions limits, reporting obligations, and financial penalties. This exemption covers the vast majority of 2–4 family properties in NYC. ________________________________________ What Are “Prescriptive Energy Conservation Measures”? Prescriptive Energy Conservation Measures are a compliance option for covered buildings, allowing them to meet the law through basic energy upgrades instead of calculating emissions. Common examples include: • Insulating exposed hot water or steam pipes • Installing boiler heat timers or outdoor temperature controls • Using LED lighting and occupancy sensors in common areas • Implementing temperature setbacks during low-use hours These measures are often mentioned in Local Law 97 discussions—but they are not requirements for exempt buildings. ________________________________________ Do 2–4 Family Owners Need to Install These Measures? No. If your building is under 25,000 square feet, these upgrades are not required, not inspected, and not reported to the city. Some owners still choose to install them to reduce fuel costs or improve comfort, but that decision is purely optional. ________________________________________ Bottom Line for Small Property Owners Local Law 97 was not designed with small residential landlords in mind. For most 2–4 family properties, it creates no legal obligations, no penalties, and no compliance burden. Understanding this distinction can save owners unnecessary stress—and unnecessary spending.

Property management can be a complicated song and dance which always requires a fine attention to detail. One facet that does not receive...

Creating and maintaining a proper budget is critical for success when managing a property. Having a well-thought-out budget provides you...

Being proactive and having the right maintenance plan in place can significantly reduce long term expenses.

Owning and managing rental properties can be a lucrative venture but can also come with its own set of challenges. It can be commonplace...

The number of new Manhattan condominiums sold in January declined to match the average monthly sales between 2015 and 2020. Although...

The Good Cause Eviction law of the City of Albany (Local Law F of 2021) was in direct conflict with and preempted by New York State law,...