MA Renter-Paid Broker Fee Ban Begins Aug. 1: What Effect Will It Have On Housing Crisis?

MASSACHUSETTS — A new state law banning the common practice of making renters shoulder the burden of landlord-incurred broker's fees upon moving into a new apartment goes into effect on Aug. 1, while the law's implications on rent prices and the overall housing crisis across Massachusetts are unclear.

In January, Gov. Maura Healey announced that the broker-fee ban would be part of her 2026 state budget — which was signed into law on July 4.

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Many renters in the state have been required by default to cover the cost of a broker fee when they rent an apartment, which could be equivalent to a full month of rent. The new law requires that the person who hires the broker — in most cases, the landlord — covers the fee.

"Broker fees are an unfair cost for renters, and they should not be on the hook to pay for someone they didn’t hire," Healey said at the time. "We're proud to be proposing this change that will save renters thousands of dollars — making it possible for more young people, seniors and families to stay in Massachusetts, help businesses attract the best talent, and put more money back in people's pockets for groceries, health care, and other needs."

With the average rent in Massachusetts being about $2,500, the practice of forcing tenants to pay first month, last month, a one-month security deposit, and a broker's fee, often equivalent to one month's rent, means the cost of moving could be more than $10,000.

"It's much harder for people to move into these new homes when they have to pay a whole extra month of rent to a broker that they didn't even hire," Lt. Gov. Kim Driscoll said. "Eliminating renter-paid broker's fees will make the rental process fairer and less burdensome — because moving is already hard enough."

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Some housing analysts are concerned that landlords will find a way to make up for the lost ability to recoup the broker's fee by simply raising the price they demand for rent — potentially driving market-rate apartments even higher and further exacerbating the affordable housing crisis.

"Passing apartment broker fees onto tenants makes the already high cost of moving even higher," countered Housing and Livable Communities Secretary Ed Augustus. "By shifting the cost of broker fees away from renters who do not hire the broker themselves, we can create more mobility in the housing market, allow tenants to have more choice, and save residents money."

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(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. X/Twitter: @Scott_Souza.)