Newark's broker fee ban is now in effect. The ordinance, passed unanimously by the Newark Municipal Council on September 23, 2026, and signed by Mayor Ras J. Baraka, became law on October 13, 2026 — 20 days after its adoption. Here is a factual breakdown of what the law does, who it applies to, and what renters and landlords need to know right now.
What the Law Does
The ordinance prohibits landlords, property owners, and developers from charging tenants broker fees or commissions when renting an apartment in Newark. Previously, it was common practice in Newark — as in New York City and many other urban rental markets — for landlords to hire real estate brokers to list and show their apartments, then pass the broker's commission directly to the incoming tenant. Those fees often equaled one or two months' rent, stacking on top of security deposits and moving costs.
Under the new ordinance, if a landlord hires a broker, the landlord pays the broker. Not the tenant.
The Workaround Protections
The ordinance goes beyond simply banning broker fees at signing — it specifically closes off the workaround tactics that have appeared in other cities where similar rules have been enacted. Under Newark's law:
Landlords cannot raise base rent for the purpose of recouping broker costs. Landlords cannot add administrative surcharges or hidden fees to cover broker expenses. Landlords cannot reduce concessions or benefits otherwise available to tenants — such as a free month of rent — to offset what they're paying brokers. Landlords cannot condition a lease on a tenant agreeing to use a specific brokerage firm or agent.
In short: if the purpose of any additional cost or reduced benefit is to pass broker fees back to the tenant, it is prohibited.
The Disclosure Requirements
The law also imposes new transparency rules on every rental transaction in Newark. Landlords or their agents must provide tenants with an itemized written disclosure of all required fees before a lease is signed. Additionally, every rental application in Newark must now include a landlord-signed statement confirming that no broker fees are being charged to the prospective tenant.
These requirements apply to both market-rate and affordable housing units across the city.
What Landlords Can Still Do
The ordinance does not prohibit landlords from hiring real estate brokers. Landlords can still work with brokers to list, show, and market their apartments — they simply have to pay for that service themselves, as the party who engaged the broker.
Tenants who independently hire their own broker to help them search for an apartment may still be charged by that broker for their own services. The ban specifically applies to fees that landlords or their agents attempt to pass to tenants.
The Penalties
Violations of the ordinance carry fines of up to $1,250 per instance, and each improper broker fee charged to a tenant counts as its own separate violation. A landlord who charged three tenants illegal broker fees would face up to $3,750 in fines, for example.
Enforcement falls under the Newark Department of Public Safety.
Why Newark Passed This Now
Newark is a city of renters. According to U.S. Census data cited in reporting on the ordinance, just 24.4 percent of Newark residents live in owner-occupied housing — the lowest homeownership rate among New Jersey's ten largest municipalities. Roughly 75.6 percent of the city's population rents.
That makes any upfront cost added to renting — a security deposit, moving expenses, and on top of it a broker commission — disproportionately impactful on a large share of Newark's population. Mayor Baraka framed the ordinance explicitly in those terms: "When people rent an apartment in Newark, they too often must pay a large brokers fee or commission in addition to the security deposit of one or two months' rent and the high expense of moving," he said. "Our new ordinance lifts an unfair and unjust burden on tenants, and puts it where it belongs, on the backs of landlords, owners, developers and their agents."
At-large Council Member Donna Jackson, one of the nine council members who voted unanimously in favor, put it more directly: "It's time to stop allowing the big boys to abuse tenants by charging them $5,000 for rent and $5,000 for the broker's fee."
The ordinance also comes as Newark is experiencing accelerating construction of new apartments — including a wave of market-rate units — with housing demand spreading west from the Hudson River waterfront along PATH and NJ Transit rail corridors. The city separately requires that 20 percent of newly constructed apartments be set aside for low- and moderate-income residents.
The Statewide Context
Newark's ordinance is not operating in isolation. City officials noted at the time of passage that the local law mirrors legislation currently under discussion in the New Jersey Legislature — Assembly Bill A4326, introduced in February 2026. That statewide bill would require itemized fee disclosures in all residential rental listings across New Jersey and impose penalties under the New Jersey Consumer Fraud Act for violations: up to $5,000 or three times the amount of all fees improperly charged to a tenant, whichever is greater.
As of the Newark ordinance's passage, A4326 had not moved out of committee in either chamber of the Legislature, but the Newark law's passage adds local momentum to the statewide conversation.
How It Compares to New York City
Newark's approach mirrors New York City's Fairness in Apartment Rental Expenses Act — known as the FARE Act — which bars brokers from charging tenants fees on listings the broker published or handled on a landlord's behalf, and prevents landlords from conditioning a rental on a tenant hiring a particular agent. The U.S. Court of Appeals for the Second Circuit affirmed the NYC FARE Act against constitutional challenges in a ruling issued in July 2026.
In New York City, broker fees have typically run between roughly 8 and 15 percent of a lease's annual value — a significant upfront cost in a high-rent market. Newark's rental market, while less expensive than Manhattan, has seen rents rise substantially in recent years, making broker fees a proportionally similar burden for Newark renters at lower income levels.
Industry Response
New Jersey Realtors — the state's main real estate industry group — had not fully assessed the ordinance's impact at the time of its passage. A spokesperson for the organization said in a statement that the group was "still reviewing the ordinance in its entirety and assessing the exact effects on the real estate community," while noting that "New Jersey Realtors provide critical services for their clients in Newark and around the state." The New Jersey Apartment Association declined to comment on the ordinance.
What This Means If You're a Renter in Newark Right Now
If you are currently searching for an apartment in Newark or will be signing a lease after October 13, 2026, the following applies to you:
No landlord, property owner, developer, or agent can legally require you to pay a broker commission as part of your rental transaction. Before you sign a lease, you are entitled to receive an itemized written disclosure of all fees. Your rental application should include a signed landlord statement confirming that no broker fees are being charged to you. If you are asked to pay a broker fee by a landlord or their agent, that request is illegal under Newark municipal law and can be reported to the Newark Department of Public Safety.
If a landlord attempts to pass broker costs back to you through higher rent than advertised, reduced concessions, or any other indirect method, that is also a violation of the ordinance.
What This Means If You're a Newark Landlord
If you engage a real estate broker to list or show your Newark rental property, you are responsible for that broker's fee in full. You cannot pass it to your tenant directly or indirectly. You must include a signed statement with every rental application confirming that no broker fees are being charged to the applicant. You must provide an itemized written disclosure of all fees before any lease is signed. Non-compliance can result in fines starting at $1,250 per violation.
Frequently Asked Questions
When did the Newark broker fee ban take effect? October 13, 2026 — 20 days after the ordinance was adopted by the Newark Municipal Council on September 23, 2026.
Who voted for it? The Newark Municipal Council voted 9-0 in favor. The ordinance was proposed by Mayor Ras J. Baraka as part of his "Keeping Newark Affordable" agenda.
Does it apply to affordable housing units? Yes. The ordinance applies to both market-rate and affordable housing units in Newark.
Can I still hire my own broker to help me find an apartment in Newark? Yes. If you independently hire a broker to assist in your apartment search, that broker may charge you for their services. The ban applies to fees that landlords or their agents attempt to pass to tenants — not to brokers hired directly by a tenant to represent the tenant.
Is there a statewide NJ broker fee ban? Not yet as of this writing. Assembly Bill A4326, introduced in February 2026, would extend similar protections statewide, but has not passed as of the Newark ordinance's effective date. Newark's law applies only within city limits.
What if a landlord tries to charge me a broker fee anyway? That is a violation of the ordinance. Report it to the Newark Department of Public Safety. Each improper fee charged constitutes a separate violation subject to fines of up to $1,250.
