Massachusetts Law Shifts Broker Fees From Renters to Landlords

As of August 1, 2025, a new Massachusetts law prohibits tenants from paying broker fees when renting apartments, shifting the cost to the party that initially hires the broker, typically landlords. While renters welcomed the change as it reduces upfront move-in costs, some experts warn landlords may pass these costs onto tenants through increased rents, potentially resulting in higher annual payments, especially in high-demand Boston neighborhoods. The law aims to alleviate the financial burden on renters by eliminating fees that were often equivalent to a full month's rent, although it only applies to leases signed after August 1. Tenant advocates view the move as a positive step toward housing affordability, while brokers and landlords express concern about potential rent increases. Tenants are also urged to be cautious of rental scams in the competitive Boston market. Meanwhile, similar landlord reforms in the UK are causing uncertainty, with some landlords considering removing properties from the rental market, potentially leading to decreased availability and higher rents.