How the New Massachusetts Broker Fee Law Affects Landlords & Renters

You’ve probably heard the news: Massachusetts “banned” renter-paid broker fees. But before you celebrate or panic, there’s critical information missing from those headlines. As a real estate professional working with both landlords and tenants daily, I’ve seen how this new law creates more questions than solutions. Let me break down what really changed and the three major problems nobody’s talking about:

Problem 1: The law didn’t actually eliminate renter-paid fees. Starting August 1, the law states that only the party who hired the broker can pay their fee. If a landlord hires a broker to list their property, they must cover the broker’s commission. However, if a renter works with their own agent to find an apartment, they still pay their agent’s fee. In Boston’s competitive rental market, where many tenants use brokers to find housing, this means most renters will still face broker fees despite the new law.

Problem 2: Misleading messaging creates false expectations. Nearly every news outlet framed this as Massachusetts “ending” renter-paid broker fees. This inaccurate reporting does renters a disservice. Many will enter the housing market expecting no fees, only to discover they still owe thousands in broker commissions when using a tenant agent. The confusion could lead to last-minute financial shocks during an already stressful moving process.

Problem 3: Unintended consequences may hurt renters long-term. We’ve seen this play out before. When New York implemented similar changes, landlords raised rents to offset their new responsibility for broker fees. Massachusetts landlords may do the same, making housing even less affordable over time. While the law aimed to reduce upfront costs, it might actually increase monthly expenses for tenants.

What this means for you. If you’re a renter, don’t assume broker fees have disappeared. You’ll still need to pay them if you hire your own agent to help find an apartment. Before touring any properties, make sure to ask who’s responsible for the broker fee to avoid any surprises. It’s smart to budget as if fees still apply, because in most cases, they will. The law may have changed, but the reality is that many renters will still face these costs.

For landlords, the rules have shifted significantly. You’re now responsible for paying your listing agent’s commission, which means you’ll need to factor this into your financial planning. Many property owners may need to adjust their rental pricing strategies to account for this new expense. Being upfront with potential tenants about who pays what fees will help avoid confusion and build trust during the leasing process.

This law creates a complex new landscape for Massachusetts housing. Whether you’re searching for an apartment or leasing your property, understanding these nuances will help you avoid costly surprises.

For personalized guidance on navigating these changes, contact me at (857) 210-9925 or email Lou@c21revolution.com. You can also visit my website at https://louis.c21revolution.com to schedule a consultation. Let’s discuss how this law specifically impacts your rental situation.