📢 What the Massachusetts Broker Fee Ban Means for Renters, Landlords, and Real Estate Pros
As of August 1, 2025, Massachusetts renters will no longer be required to pay a broker fee, thanks to a new law championed by Governor Maura Healey. This move aligns the state with New York City’s rental policies, but while it may sound like a win for tenants, the reality is more nuanced for renters, landlords, and brokers alike.
Let’s break down what this law means, how it will impact your wallet, and the major compliance issues landlords and agents need to be aware of.
🚫 What’s Changing?
The new law makes it illegal for tenants to pay broker fees unless they hired the agent themselves. That means:
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If a landlord hires a broker, the landlord pays the fee.
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If a tenant hires a broker to assist them in their search, the tenant pays the fee.
Brokers are no longer allowed to work both sides of a deal. They must represent either the landlord or the tenant, not both.
💸 The Cost Shift: Are Renters Saving?
Governor Healey said she’s “getting rid of broker fees for renters.” And while renters may save on upfront costs, experts predict landlords will adjust:
➡️ Higher Rents Ahead: Landlords may roll the broker fee into the rent, spreading the cost over the lease term.
➡️ Long-Term Costs: Renters may pay less upfront, but more over time. What appears to be a savings today could add hundreds to your annual rent bill.
😬 What Landlords Need to Know
For landlords, especially small property owners, this law brings both compliance pressure and operational headaches. Here’s what to keep in mind:
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You must pay the broker if you hire them. Then, update your lease agreements and marketing language accordingly.
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You can’t ask tenants to reimburse you or sneak the cost in through add-ons like application or background check fees.
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Noncompliance can get expensive—we’re talking lawsuits, double/triple damages, and attorneys’ fees under Massachusetts’ Consumer Protection Act (Chapter 93A).
➡️ Tip: Update all old agreements and listing templates now. You could be held liable if you continue using old language stating that the tenant must pay the fee.
🔍 Small Landlords at a Disadvantage?
Unlike larger landlords with in-house leasing teams, small property owners often rely on real estate agents to handle everything—from advertising to showings. But paying the broker out-of-pocket could be a burden, and many worry it’s just not sustainable.
A survey of over 10,000 local landlords revealed that 93% are concerned this law unfairly targets small owners.
“Most of them work full-time or own small businesses,” said Boston Pads CEO Demetrios Salpoglou. “They don’t have time to manage leasing logistics without help.”
🧾 Compliance Checklist for Landlords & Brokers
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✅ Use new contracts that clearly state who hired the broker.
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✅ Make sure brokers only accept payment from the hiring party.
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✅ Remove tenant-paid fees like background checks or credit checks from the lease or application process.
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✅ Train staff and leasing agents—compliance missteps can cost your license or result in legal action.
⚖️ Legal Risks for Ignoring the Law
If you break this law, don’t expect a slap on the wrist. Violations fall under the Consumer Protection Act, which means:
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Tenants can sue in court
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You could owe double or triple damages
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Attorney General could step in
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Brokers could face license suspension or revocation
🎯 The Bottom Line
This law might reduce upfront costs for renters, but it won’t reduce the total cost of housing, and it’s likely to create new challenges for small landlords and real estate professionals.
Both landlords and brokers must stay compliant, or they risk facing serious legal and financial consequences. And renters? Don’t be surprised if “no broker fee” listings come with higher rent than before.
Want help navigating these changes as a renter, landlord, or investor? I’m here to help. Let’s chat.
📧 Contact Page Innis
📍 Serving Boston and the Lakes Region of NH
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