A Broker-Free Summer? Major Changes to Rental Fees Set for June 11
June 11th could mark a major shift for renters—one that finally puts an end to paying broker fees for agents hired by landlords. It’s a long-standing practice that’s frustrated countless tenants over the years, but a new regulation may be about to change the game.
The Justness in Home Rentals (FARE) Act is scheduled to take effect on June 11th. Under this new rule, property managers—not renters—would be responsible for paying the brokers they hire. This change, according to the Department of Consumer and Worker Protection, aims to bring relief to renters who’ve long shouldered hefty fees just to secure a place to live.
But while this shift promises to lighten the financial load for many, it also brings uncertainty during what’s expected to be a scorching summer rental season.
Will It Really Happen?
The biggest question is whether the FARE Act will actually take effect as planned. A group of brokerage firms, alongside a major real estate board, filed a lawsuit to block the regulation in December. Arguments from both sides were heard in early May—just weeks before the scheduled rollout.
And even if the law takes effect, it’s still unclear how brokers will respond. Of eight major brokerages asked to comment, only three were willing to discuss how the market might adjust under the new rules.
One thing is certain: Renters planning to move this summer need to be ready for some unknowns.
“This is obviously going to be a big change,” said Matt Stouffer, CEO of a leading brokerage firm. “But we’ve weathered bigger ones before, and things ended up better than expected.”
What the FARE Act Actually Means
Under the new rule, renters wouldn’t be required to pay a broker fee when responding to an apartment listing posted by a broker working on behalf of a landlord.
“If you’re contacting someone to rent an apartment they advertised, they’re not working for you, and you don’t pay them,” explained Anna Klenkar, an independent broker and supporter of the FARE Act. “They’re representing the property owner.”
Klenkar, who testified during the City Council’s lengthy hearing on the Act, warned that some brokers might still try to bend the rules—by posting no-fee listings, only to pressure renters into signing agreements for access to additional units.
Watch Out for Loopholes
The Act clearly prohibits brokers from conditioning access to rental properties on hiring them. That means renters only pay a fee if they intentionally hire a broker to represent them—and only under a written agreement.
But the potential for abuse remains. Some brokers may still pressure renters into signing unnecessary agreements, said Jared Antin, a managing director at a luxury real estate firm.
“I think it’s unethical to force someone to sign something just to view a property,” he said. “But unfortunately, I can imagine it happening.”
Enforcement of the law will fall to the Department of Consumer and Worker Protection. The penalties range from $500 to $2,000 per violation—less than many broker fees—but additional fines or even license revocation could be imposed by the state’s Department of State.
Starting June 11th, renters can report violations by calling 311 or filing a formal complaint with the Department of State.
“There needs to be real enforcement,” said Jordan Melkin, a broker who backed the bill. “But hopefully, renters will feel empowered to say, ‘We’re not paying for this,’ and bring that mindset into the market.”
Know Who Works for Whom
Transparency will be key in this new landscape. Brokers are required to disclose whether they represent the landlord or the tenant. Without a signed agreement, renters are not obligated to pay any fees.
“Renters should know they’re not required to pay a broker unless there’s a written agreement stating that the broker is working directly on their behalf,” said Daniel Marrello, a manager at a major brokerage.
Every broker echoed the same advice: Always ask who the broker is working for.
“If you meet someone through a listing site, be sure you understand their role,” Stouffer emphasized. “It’s all about knowing who represents whom.”
If you do choose to hire a broker, know that their fee is negotiable—typically ranging from 10 to 15 percent of the annual rent—and you’ll be asked to sign a tenant agreement outlining any costs before moving forward.
Other than that, the rental process should feel familiar. The biggest difference will be a clearer distinction in responsibilities—and potentially, a little less financial stress.
Should You Wait Until June to Move?
That depends. If your lease ends soon or you’re ready to move, you might not have the luxury of waiting. But if your timeline is flexible and you want to avoid a broker fee, holding off until after June 11th could be a smart move—provided the regulation isn’t delayed in court.
“If you can wait until late June instead of moving in May, it might pay off,” Klenkar said. “Just know that rents tend to rise during the summer, so we’re in a bit of a gray zone.”
If the regulation is blocked, you might find yourself delaying your move for nothing. However, legal experts believe the lawsuit has little chance of success. Even the governor recently voiced strong support for the FARE Act in a video endorsement alongside the bill’s lead sponsor.
For now, renters should stay informed, ask questions, and be ready for a potentially game-changing shift in how rentals work this summer.