SPRINGFIELD – To protect renters from unfair and excessive housing costs, State Senator Steve Stadelman is spearheading legislation that would prevent landlords from passing broker and leasing agent fees onto tenants.
“Renters are already facing significant upfront housing costs, and they should not be forced to pay broker fees for services hired by a landlord or property owner,” said Stadelman (D-Rockford). “This legislation creates a fairer and more transparent rental process by ensuring the party who hires the broker is responsible for paying that fee.”
Broker and leasing agent fees are common in the rental housing market to compensate agents for marketing properties, showing units, screening applicants and facilitating lease agreements. These fees are often structured as either flat fees or percentages of annual rent and can add thousands of dollars to the cost of securing housing. In many cases, landlords hire brokers to manage rental transactions but require prospective tenants to pay the broker’s commission in addition to application and screening fees.
Senate Bill 329 would prohibit landlords and property owners from requiring tenants or prospective tenants to retain, engage with or pay a fee to a real estate broker or residential leasing agent hired by the landlord. The measure would also prohibit landlords from directing brokers or leasing agents to collect payment from tenants for services performed on behalf of the landlord or property owner.
“Tenants deserve transparency about the true cost of renting a home,” said Stadelman. “This bill prevents landlords from shifting their business expense onto renters while still preserving the ability for anyone to work with a broker or leasing agent if they choose.”
Senate Bill 329 passed the Senate Executive Committee Tuesday and heads to the full Senate.
