Massachusetts Shifts Broker Fees to Landlords, Rent Prices Rise

Massachusetts is implementing a new rule, effective August 1, that shifts the responsibility for broker fees from renters to landlords, aiming to alleviate upfront rental costs that often equal a full month's rent. Signed into law by Governor Maura Healey, the policy clarifies that tenants only pay broker fees if they directly hire the broker, providing financial relief especially to lower-income renters and young professionals in competitive markets like Boston. Housing advocates view the measure as a step toward greater affordability, although concerns remain that landlords may increase rents to offset these costs, with some already adjusting prices accordingly. The reform is part of broader efforts to eliminate "junk fees" that inflate consumer costs, following trends seen during the pandemic and in industries like ticket sales. Renters have long faced significant barriers due to high upfront costs including first and last month’s rent, security deposits, and broker fees, which this rule seeks to reduce. Despite potential rent increases, the policy represents a notable shift in renter protections in Massachusetts, aligning with similar reforms in other major cities.