Renting an apartment often involves unexpected costs, and one of the most confusing is the broker fee. This charge, paid to a real estate agent for helping find and secure a rental, can add thousands to your upfront expenses. Many renters wonder exactly who is responsible for covering it—the tenant, the landlord, or someone else.
The answer isn’t the same everywhere. It depends on location, who hired the broker, and local laws. In some cities, tenants traditionally pay even if the broker works for the landlord, while in others, the landlord covers it. Recent changes in major markets have shifted this balance toward fairness for renters.
This guide explains broker fees clearly, including typical amounts, who pays where, and ways to avoid or reduce them. Understanding these details helps you budget better and negotiate confidently when searching for your next home.
What Is a Broker Fee?
A broker fee, also called an agent’s commission or finder’s fee, compensates a licensed real estate professional for services in rental transactions. Brokers market properties, show units, screen applicants, and handle paperwork to connect landlords with tenants.
Fees usually equal one month’s rent or 8-15% of the annual rent, often $2,000 to $6,000 for a typical apartment. They are due at lease signing, adding to first month’s rent, security deposit, and other costs.
Brokers earn this for their time and expertise, especially in competitive markets where good rentals go fast. Not all rentals involve fees—direct landlord deals or “no-fee” listings skip them entirely.
Who Pays the Broker Fee When Renting
The party who hires the broker generally pays the fee, though practices vary by location and laws. If the landlord hires the broker to fill a vacancy, the landlord should cover it in most places. If you hire a tenant’s broker for dedicated search help, you pay their fee.
In many U.S. cities, landlords pay when using a broker, as it’s a marketing cost. Exceptions include competitive markets like New York City and Boston, where tenants historically paid even for landlord-hired brokers.
Recent laws have changed this. In NYC, the FARE Act (effective June 2025) prohibits landlord-hired brokers from charging tenants. Massachusetts enacted a similar rule in August 2025. These shifts make rentals more affordable by eliminating surprise fees for services renters didn’t request.
If you hire your own broker, expect to pay—typically 10-15% of annual rent. This buys exclusive representation and access to more listings.
Variations by Location
Rules differ across the country. Here’s a breakdown for major areas:
- New York City → Landlords pay if they hire the broker (FARE Act, June 2025). Tenants pay only if hiring their own agent.
- Boston/Massachusetts → Landlords pay for their hired brokers (effective August 2025). Tenants pay for personal brokers.
- Chicago, Los Angeles, San Francisco → Landlords typically cover fees; tenant charges are rare.
- Other cities → Landlord pays in most cases, especially outside Northeast hotspots.
Always check local regulations, as they evolve to protect renters.
Average Broker Fees and Examples
Fees range from 8-15% of annual rent or one month’s rent when charged. For a $3,000/month apartment ($36,000/year):
- 10% fee: $3,600
- 15% fee: $5,400
- One month: $3,000
In tenant-paid markets (pre-2025 changes), these added heavily to move-in costs. Now, in reformed areas, tenants avoid them unless hiring personally.
Comparison of Broker Fee Practices
This table compares key markets:
| Location | Who Typically Pays (Landlord-Hired Broker) | Average Fee Amount | Notes/Laws |
|---|---|---|---|
| New York City | Landlord | 8-15% of annual rent | FARE Act (June 2025) |
| Boston/Massachusetts | Landlord | One month’s rent | New law (August 2025) |
| Chicago | Landlord | Varies, often covered | Tenant rarely pays |
| Los Angeles | Landlord | Low or none for tenants | Common no-fee listings |
| National Average | Landlord | 10-12% if applicable | Varies by state/market |
This shows a trend toward landlord responsibility in high-cost areas.
No-Fee Apartments Explained
No-fee rentals mean tenants avoid broker charges. Landlords either handle leasing themselves or pay the broker to attract renters faster.
These listings are common in slower markets or new buildings filling units quickly. Search filters on sites like Zillow or StreetEasy highlight them.
No-fee doesn’t always mean cheaper overall—landlords might raise monthly rent slightly to offset costs. Still, it reduces upfront expenses significantly.
Tips to Avoid or Reduce Broker Fees
Look for direct landlord listings on Craigslist, Facebook, or building websites. Use “no-fee” filters on rental platforms.
Negotiate in tenant-paid scenarios—offer quick move-in or longer lease for reductions. In reformed markets like NYC, politely remind brokers of the law if charged improperly.
Consider hiring your own broker only if needed; many find great places independently.
What If You’re Charged Incorrectly?
In areas with tenant protections, refuse improper fees and report violations. NYC renters can file complaints with the Department of Consumer and Worker Protection.
Document everything, including who hired the broker. Laws often include penalties for non-compliance, protecting your rights.
Conclusion
Knowing who pays the broker fee when renting empowers better decisions in your search. In most places—and increasingly in major cities like NYC and Boston—the landlord covers it when hiring the broker, thanks to recent fairness laws. Tenants pay only if seeking personal representation. Focus on no-fee options or direct deals to minimize costs, and always verify local rules for the clearest picture.
FAQ
Who pays the broker fee in most U.S. cities?
The landlord typically pays when hiring the broker to market their property. Tenants pay only if they hire their own agent for dedicated help.
Has the broker fee rule changed in NYC?
Yes, the FARE Act (effective June 2025) requires the hiring party—usually the landlord—to pay. Tenants no longer cover landlord-hired brokers.
What is a typical broker fee amount?
When charged, it’s often 8-15% of annual rent or one month’s rent, ranging from $2,000-$6,000 depending on the apartment price.
How can I find no-fee apartments?
Use rental sites with “no-fee” filters, search direct landlord listings, or look in less competitive neighborhoods where landlords incentivize renters.
Can broker fees be negotiated?
Yes, especially in slower markets or with direct deals. Offer concessions like longer leases for reductions, though laws now limit charges in some areas.