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Boston has become the last major city in the U.S., following New York City, to do away with the tenant-paid broker’s fee, as a new state law addressing this issue takes effect this week.
Massachusetts Gov. Maura Healey, a Democrat, signed the law in early July, months after it was proposed as part of the fiscal year 2026 budget. The law enters into force on Friday.
Under the new legislation, renters in Boston and throughout Massachusetts will be shielded from having to pay the broker’s fee—often equivalent to one month’s rent—unless they hired the broker themselves.
Instead, the party that retained the services of the broker—typically the landlord—will be responsible for footing the bill.
“The days of renters being forced to shell out upwards of $10,000 before they can even move into an apartment are over,” Healey said in a statement this month. “I proposed banning renter-paid broker’s fees because the cost of housing is already way too high in Massachusetts without adding thousands of dollars in fees for a service you didn’t hire.”
The policy change is aimed at making housing more affordable for tenants—a major challenge in a city such as Boston, which has one of the highest median asking rents in the country, reaching $3,009 per month in June, according to the latest Rent Report from Realtor.com®.
What is a broker’s fee?
When renting a house or an apartment, a landlord would typically ask for first and last month’s rent, plus a security deposit that is the equivalent of one month’s rent.
At times, the landlord will also require the tenant to cover the broker’s fee, or commission, paid to an agent or broker for their work on the real estate transaction, typically equal to a month’s rent.
All told, a renter could be out four months’ rent before ever setting foot inside their apartment, which in Boston could be over $12,000.
“Between first and last month’s rent, a security deposit, and a broker’s fee—moving to a new apartment was breaking the bank for far too many Massachusetts residents,” Lt. Gov. Kim Driscoll said in a statement. “This was forcing young people [to] look elsewhere to start their careers, making it harder for businesses to find the talent they need, and preventing families and seniors from moving into the homes that are right for them.”
With this new law, the idea is that shifting the burden of the broker’s fee will put money back into renters’ pockets and help address Massachusetts’ housing crisis, according to state Senate President Karen Spilka, a Democrat representing Ashland, MA.
Critics sound off on new law
But not everyone is convinced that banning the renter-paid broker’s fee is a necessary—or even desirable—move.
Doug Quattrochi, executive director of MassLandlords, a nonprofit trade association of landlords in Massachusetts, argued in an interview with MetroWest Daily News that it all comes down to whether the new law could be enforced.
As Quattrochi noted, there is already a state law on the books that bars landlords from pocketing more than first and last month’s rent, a security deposit, and the cost of a new lock and key, yet tenants have continued being charged the broker’s fee.
“If the new law doesn’t allow for enforcement, if it doesn’t allow for anyone to police this stuff, it’s going to continue to happen,” cautioned Quattrochi.
What’s more, the law could have the unintended consequence of driving up rents in Boston.
Ed Greable, an agent with Keller Williams Realty Boston Northwest, tells Realtor.com that while the new law might put a bit of extra cash in renters’ pockets, it could also prompt landlords to hike rents to offset the expenditure of paying the broker’s fee.
“I’m aware of landlords who have bumped up the rent a little bit to cover that rental fee that they have to pay their agent,” reveals Greable.
Overall, the real estate professional predicts that while the law “may have good intentions, it’s really not going to change a lot.”
Asked if he believes the legislation could help make high-priced Boston more budget-friendly for renters, Greable categorically says, “not in the least bit.”
He continues: “The only thing that’ll make housing more affordable for renters is creating more housing and removing the impediments to creating more housing. … There’s too many regulations and laws in effect that slow down developments.”
Until recently, Boston and New York City were the only two major metros where renters were still being charged the broker’s fee, inflating the cost of moving by thousands of dollars in some instances.
In November 2024, the New York City Council voted 42-8 to pass the FARE (Fairness in Apartment Rentals) Act, shifting the payment of the broker’s fee to the party that hired the broker. That law went into effect in June.