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Broker fees for Massachusetts renters could end under Healey plan

Renters may not have to pay broker fees in Massachusetts under Healey new plan
Renters may not have to pay broker fees in Massachusetts under Healey new plan 00:30

BOSTON - Broker fees may be a thing of the past for Massachusetts renters if a plan from Gov. Maura Healey is successful.

Ending broker's fees for renters

Healey announced Monday she's included a proposal in her 2026 budget to have whoever hired the broker pay the fee, which is typically the landlord. The fee can be equal to a full month's rent and has fallen on renter's shoulders for years across Massachusetts.

"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 in a statement.

She said in a statement that it would allow more young people, families, and seniors to stay in the state while also putting more money in residents' pockets for health care, groceries, and other expenses.

"Eliminating renter-paid broker's fees will make the rental process fairer and less burdensome – because moving is already hard enough!" Lieutenant Governor Kim Driscoll said in a statement.

Around 65% of Boston residents rent their homes. The median rent for a one-bedroom in Boston is $3,395, according to Apartments.com. This means that in many cases, renters must pay upwards of $13,000 upfront for a security deposit, the first and last month's rent, and a broker's fee.

"It definitely incentivized me to stay in the same building, because I didn't want to have to pay again," said renter Spencer Copeland.   

Healey's budget would have to be approved by the state Legislature before the change to broker fees could take effect. Lawmakers in Massachusetts tried to pass a bill last year to have landlord's pay broker fees, but it did not work out.  

Would it raise rent?

If Healey's plan becomes law, should tenants be concerned that their rent will go up? The CEO of the largest real estate portal in Boston thinks so.

"If a landlord's forced to pay the commission, they'll probably just raise their rent to cover that difference," said Demetrios Salpoglou, the CEO of BostonPads.com. He recommends building more housing rather than eliminating broker fees for renters.   

New York City ends broker's fees

New York City passed the FARE bill in November, which did exactly what Healey says she plans to do. The bill became law in December, and will force whoever hires the broker to pay them. 

The law will go into effect in New York City in June.

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