New Rule Around Broker Fees for Residential Rentals

As of August 1, broker fees in a rental transaction cannot be shifted onto the other party in the transaction per state law.

The law reads as follows: "A licensed broker or salesperson may solely contract with a prospective tenant to find rental residential real property for a tenant and present an offer to lease to the landlord or landlord’s agent and negotiate on behalf of the tenant or may solely contract with a landlord or landlord’s agent to find a tenant for a property.  Any fee shall only be paid by the party, lessor or tenant who originally engaged and entered into a contract with the licensed broker or salesperson."

MLS PIN has also implemented changes to residential rental listings effective yesterday including the removal of List Brokerage Fee Required from Tenant, List Brokerage Fee Amount, and Cooperating Compensation. Check MLS PIN's News & Notes section for more information.

MAR has been updating a resource article with an FAQ here for more information.

MAR has released the updated set of rental forms. You can read more about each of them here. Forms should be available in your preferred transaction portal.

New Forms Include:

• 430 - Non-Exclusive Right to Lease
• 431 - Right to Lease Fee Agreement
• 432 - Tenant Rental Fee Agreement

Updated Forms Include:

• 418 - Exclusive Right to Lease
• 704 - Exclusive Tenant Representation Agreement
• 400 - Prospective Tenant Application