SPRINGFIELD – State Senator Steve Stadelman passed legislation belonging to a comprehensive housing package through the Senate that includes multiple consumer provisions. One key provision protects renters from unfair housing costs by prohibiting landlords from requiring tenants to pay broker and leasing agent fees for services hired by the property owner.
“Finding a place to live is expensive enough without being charged for services you never asked for,” said Stadelman (D-Rockford). “If a landlord hires a broker to market a property and manage the leasing process, that cost should remain with the landlord – not be added to a renter’s bill.”
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.
SB 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.
“This is a straightforward consumer protection measure built around a simple principle: the person who hires a service should pay for it,” said Stadelman. “The bill doesn’t prevent anyone from working with a broker or leasing agent. It simply ensures that renters aren’t forced to cover costs that belong to someone else.”
By including SB 329 in HB 4377, lawmakers have taken a step toward a fairer and more transparent housing market for renters across Illinois.
HB 4377 passed the Senate Sunday.
