Whether you pay a Realtor when renting depends on who hired the agent and where you’re renting. The default rule is simple: the party that engaged the broker pays the broker. If the landlord listed the apartment with an agent, the landlord owes the commission, and many listings marketed as “no-fee” work exactly this way. If you hired an agent yourself to hunt for a place, you owe that agent under whatever written agreement you signed. The middle case — a landlord’s agent charging the incoming tenant — used to be routine in a handful of expensive cities, and two of those cities have now banned it.
Who Pays the Agent
When a landlord lists a unit with a broker, the landlord is the client and the fee comes out of the landlord’s pocket. In softer rental markets, landlords absorb that cost to attract tenants and advertise the apartment as no-fee. The expense sometimes gets folded into slightly higher monthly rent, so no-fee doesn’t always mean no cost, but it does mean no lump sum at signing.
In tight markets where vacancy is low and renters are competing for units, landlords have historically pushed the broker’s fee onto the incoming tenant. Paying it becomes a practical condition of getting the keys. That’s the scenario where “do I pay the agent” turns into a real four- or five-figure question.
If you’re the one who hired an agent — signing an exclusive right-to-rent agreement so someone will scout listings, schedule tours, and negotiate on your behalf — you pay that agent according to the contract, regardless of what the landlord’s side is doing.
How Much the Fee Runs
Two pricing models dominate. The most common is a flat fee equal to one month’s rent: a $2,000 apartment produces a $2,000 fee at signing. The alternative is a percentage of the annual lease value, typically 10% to 15%. On that same $2,000 apartment under a 12-month lease, the percentage model produces a fee between $2,400 and $3,600.
Rates aren’t federally regulated. They’re set by agreement between the agent and whoever is paying. In less competitive markets, some agents work for a flat amount or charge as little as 25% to 50% of one month’s rent. In the most expensive cities, fees have historically landed at the top of the range. Whatever the number, it should appear in writing before the agent shows you anything. If an agent is vague about the fee or won’t commit on paper, treat that as a warning.
Where Tenants Can No Longer Be Charged
Two of the country’s priciest rental markets recently banned the practice of billing tenants for a broker the landlord hired.
New York City’s FARE Act
New York City’s Fairness in Apartment Rental Expenses (FARE) Act took effect on June 11, 2025. Brokers representing landlords cannot charge fees to tenants, and landlords cannot pass their agent’s fees to prospective renters. Landlords also cannot require a tenant to hire a dual agent as a condition of renting. Violations carry civil penalties of up to $1,000 for a first offense and $2,000 for repeat violations within two years, and tenants can sue privately to recover fees charged in violation of the law.1NYC.gov. Fairness in Apartment Rental Expenses (FARE) Act
Before the FARE Act, New York City renters routinely paid broker fees of 12% to 15% of the annual rent. On a $3,000-per-month apartment, that meant $4,320 to $5,400 at signing, on top of a security deposit and first month’s rent.
Massachusetts
Starting August 1, 2025, Massachusetts law prohibits property owners from requiring renters to pay broker fees when the renter didn’t hire the broker. If the landlord hired the broker, the landlord pays. Only tenants who independently retain a broker and sign a written agreement are responsible for that broker’s fee.2City of Boston. Broker Fees: What To Know About The New Law
Outside these jurisdictions, no federal rule stops a landlord’s agent from charging you. Check your state and city before assuming you can refuse.
Negotiating or Avoiding the Fee
Broker fees aren’t always fixed. Your leverage depends on the market, but a few approaches tend to work:
- Rent during the off-season. Demand drops in late fall and winter. A landlord sitting on a vacant unit in December is more willing to make concessions, and a broker may trim the fee rather than let the lease slip into next quarter.
- Offer a longer lease. A two-year commitment gives the landlord guaranteed income and spares the broker another turnover. Some brokers will cut the fee in exchange for that stability.
- Ask about referral discounts. Some brokerages reduce fees for tenants referred by existing clients. It costs nothing to ask.
- Filter for no-fee listings. In markets with higher vacancy, plenty of landlords pay the broker themselves. Searching only for no-fee units is the simplest way to avoid the cost entirely.
The weakest moment to negotiate is after you’ve fallen for a specific apartment and the landlord can tell. Keep other options alive, and don’t commit to any agent until you understand exactly what you’ll owe.
When One Agent Represents Both Sides
Dual agency means a single agent or brokerage represents both the landlord and the tenant in the same transaction. The conflict is obvious: one agent cannot fully advocate for you while also serving the landlord. Most states that allow dual agency require written disclosure and informed consent from both parties. Several states — including Alaska, Colorado, Florida, Kansas, and Texas — ban it outright.
In a rental, dual agency matters most when fees are on the table. An agent working both sides has a financial incentive to keep the fee high and close quickly. If an agent tells you they also represent the landlord, you’re entitled to understand what that means for the advice you’re getting. Under the FARE Act in New York City, landlords can no longer require tenants to retain a dual agent as a condition of renting.1NYC.gov. Fairness in Apartment Rental Expenses (FARE) Act
Protecting Yourself Before You Pay
Before handing money to any agent, verify the license. The Association of Real Estate License Law Officials (ARELLO) maintains a national database where you can confirm whether someone holds an active real estate license in their state.3Arello.org. License Verification Your state’s real estate commission can also confirm directly. Collecting a broker’s fee without a valid license is illegal in every state, and recovery from an unlicensed scammer is unlikely.
Rental fraud frequently uses the broker fee as the hook. The FTC warns about scams in which someone poses as a landlord or agent, collects fees by wire transfer, and disappears.4Consumer Advice – FTC. What To Know Before You Wire Money Red flags worth taking seriously:
- No in-person or video showing. A legitimate agent will arrange a tour.
- Pressure to pay immediately. Real landlords give you time to review the lease.
- Rent set well below comparable units nearby.
- Demand for payment by Western Union, MoneyGram, or another wire service. Wired money is effectively gone once sent.
- A “landlord” willing to hand over a lease without checking your income or rental history.
- Listing photos that look like professional real estate images, sometimes with MLS watermarks lifted from a for-sale listing.
On the payment itself: pay by certified or cashier’s check, or a secure electronic platform the broker uses with other clients. Get a written receipt for every payment. Make sure the lease is fully signed before you pay anything beyond an application fee, and confirm the broker’s fee is spelled out in writing. If it isn’t documented, don’t pay it.
Can You Deduct the Fee?
For most renters, no. The moving expense deduction has been suspended since 2018 for everyone except active-duty military members relocating under a permanent change of station, and that suspension remains in effect through at least 2025 and applies to the 2026 tax year.5Internal Revenue Service. Moving Expenses to and From the United States Broker fees and other move-in costs for a personal residence aren’t deductible. A self-employed renter claiming a home office may deduct a portion of ongoing rent, but the broker’s fee paid to find a personal home does not qualify.