Photo: Mike Macklin/WBZ NewsRadio
BOSTON (WBZ NewsRadio) — Landlords are now prohibited from charging tenants a broker's fee in Massachusetts as of Friday, thanks to a new law.
Gov. Maura Healey recently signed the Fiscal Year 2026 state budget, which includes provisions that prevent landlords from passing on broker’s fees to renters.
For years, broker fees, also known as listing or finder fees, have been a significant burden for renters across the state, with the upfront costs needed to secure a home. Brokers are used to list, market, manage, and lease units on behalf of landlords. Their fees often equate to at least one month's rent while they assist tenants in the market for a rental property. Renters usually must provide at least a security deposit and first and last month's rent when they sign a lease. The additional fees have often made it harder for low-income families, young adults, and seniors to secure affordable housing.
According to Bobby Brown, a realtor with Steve Bremis Realty Group in Somerville, the new law will ensure that renters will no longer be on the hook to cover the fees unless they hire the broker.
"The person that is, in fact, hiring the agent will be responsible for all the fees associated with that agent," Brown said.
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Although landlords aren't allowed to include the broker's fee in the rent, some professionals like Brown are concerned that they will find a loophole to cover the broker's fee.
"Add 200, add 250 to the monthly rent, and that's going to make up for the fee that they have to pay and then some. It's not going to be more expensive for a tenant necessarily. I think it's just going to be portioned out better over the course of the lease."
Landlords who don't comply with the new law may face penalties of up to at least three times the amount charged in addition to any attorney fees. Agents and brokers may have their licenses revoked or face fines if they violate the new provisions.
Tenants who have signed a lease before Aug. 1 are still responsible for the broker’s fees.
WBZ NewsRadio’s Shari Small (@ShariSmallNews) reports.