As rents surge across New York City following the passage of the FARE Act, one platform is bucking the trend and saving renters thousands: Padspin.
While most rental platforms and traditional brokers are helping landlords pass new costs onto tenants through inflated monthly rents, Padspin offers a transparent, data-driven alternative that keeps housing more affordable—both upfront and over time.
What Changed: The FARE Act and the Broker Fee Backfire
The Fairness in Apartment Rental Expenses (FARE) Act, which went into effect on June 11, 2025, made it illegal for renters to pay broker fees in most NYC rentals. Brokers historically charged fees equal to 12% to 15% of annual rent, and shifting that cost away from tenants was supposed to save renters thousands when signing a lease.
The intention was admirable.
But the outcome has been the opposite.
Instead of lowering costs, many landlords—still using traditional brokers—are simply baking those commissions into monthly rent. According to The Wall Street Journal, average NYC rents have already spiked by roughly 15%, with many landlords increasing asking rents by hundreds of dollars per month overnight.
Renters are no longer cutting a broker a check on Day One…
They’re now paying that same fee every single month with interest.
The Math Still Doesn’t Work for Renters
Business Insider reports that the FARE Act reduced upfront moving costs by about 42%, saving renters an average of $5,500–$6,000 on Day One. But the savings stop there.
Here’s the problem:
A renter who previously paid $3,500/month plus a $5,000 broker fee upfront now faces a rent closer to $3,800/month, because the landlord is spreading that fee across the lease.
After a standard 3% renewal increase in Year 2, that $3,800 rent climbs to $3,914/month. Over just two years, the renter ends up paying more than $4,600 extra compared to the old system. And in NYC, where renters often stay 3–5 years, the compounded effect becomes enormous—ultimately costing far more than the upfront broker fee ever did.
The FARE Act solved the pain at move-in.
It magnified the pain every month after.
How Padspin Can Help
Instead of helping landlords inflate rent, Padspin fixes the root of the problem: the cost structure.
1. No Broker Fees. No Baked-In Costs. Just Fair Rent.
Padspin charges landlords a simple flat fee, not a multi-thousand-dollar commission. That means there’s no need to inflate rent to recover broker costs. Renters pay the true market rent, not a disguised surcharge.
2. Real-Time and Historical Data for Smarter Pricing
Padspin gives landlords access to live comps and rental history, helping them price units accurately from day one. Fair pricing leads to faster leasing, better tenants, and higher occupancy, without artificially pushing the market upward.
3. Faster Leasing Means Lower Pressure on Rent
Many Padspin listings rent in under 72 hours. Because units are priced correctly and move quickly, landlords experience less downtime—and don’t feel forced to jack up pricing to “make up the difference.” Renters benefit from fair pricing and no bidding-war gimmicks.
Built by Renters, for Renters
Padspin was founded in 2015 by NYC renters who were tired of hidden fees, bloated rent, shady incentives, and zero transparency. Instead of repackaging the broker model under new laws, Padspin was built to replace it entirely.
Where brokers profit from higher rents, Padspin’s model works only when pricing is fair, efficient, and sustainable for both sides.
The Bottom Line
The FARE Act succeeded in eliminating upfront broker fees—but it unintentionally shifted the cost into monthly rent, where it compounds and becomes more expensive over time. Most platforms and brokers are not only ignoring the problem—they’re profiting from it.
Padspin is different.
It keeps rent fair. It keeps pricing honest. And it protects renters not just on move-in day, but every year that follows.
If you want to avoid inflated rent and save real money long-term, Padspin is the smartest place to start your NYC apartment search.