Newark Council Banned Tenant Broker Fees

The city's new ordinance prohibits landlords from passing broker costs to tenants during the leasing process.

Updated on Oct. 14, 2026 in Apartments

Gouache-painted illustration of a single large metal apartment key on a wooden table, representing new rental fee transparency. — The Newark Municipal Council has enacted a new ordinance prohibiting landlords from shifting broker commission fees onto prospective tenants. AI Illustration. Upload story photo >

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The Newark Municipal Council has passed an ordinance that officially bans landlords and agents from charging tenants broker fees. This move aims to increase transparency in the rental market and alleviate financial burdens for local residents amid a housing shortage.

Why it matters

The legislation is designed to shield renters from unexpected costs and prevent landlords from shifting brokerage expenses onto them through hidden fees or rent hikes. It establishes a new standard for fairness in the local housing market.

Landlords now face fines of up to $1,250 for every individual instance of an improper fee charged to a tenant. Each violation is treated separately, and landlords are strictly prohibited from recovering these broker costs through rent increases.

The players

Newark Municipal Council

This is the legislative body responsible for governing the city of Newark and passing local ordinances.

Division of Rent Control

This city agency is tasked with monitoring rental regulations and enforcing compliance with the new fee ordinance.

Department of Public Safety

This department oversees municipal law enforcement and will help ensure that landlords adhere to the new fee restrictions.

The details

Under the new policy, landlords must provide itemized written disclosures for all fees and sign a formal statement confirming that tenants are not required to cover brokerage commissions. Additionally, the ordinance prevents lease agreements from being conditioned on a tenant's use of a specific brokerage firm.

October 14, 2026: The ordinance was officially enacted.
November 3, 2026: The ordinance takes effect 20 days after passage.

Culture Shift

Newark's decision follows the national trend of increased rental transparency regulations aimed at protecting tenants. By codifying these restrictions, the city joins a growing movement of urban centers prioritizing affordability and fairness in the residential leasing sector.

Newark renters will no longer be required to pay brokerage fees, effectively reducing the upfront costs associated with signing a new lease. Tenants should watch for required itemized disclosures to ensure they are not being improperly charged during the application process.

The takeaway

Renters should verify that any lease offer they receive excludes broker fees to avoid unauthorized charges. Familiarizing yourself with these new disclosure requirements ensures you can exercise your rights as a tenant under city law.