New Massachusetts Law no longer require renters pay a brokers fee if they did not hire the broker

This article provides information on new Massachusetts tenant laws regarding broker fees, which became effective on August 1, 2025. It explains that tenants are no longer required to pay broker fees if they did not hire the broker themselves. The Massachusetts rental market is notorious for its high prices, and for years, prospective tenants have faced the additional burden of paying substantial broker fees—often amounting to a full month's rent—for services they never requested. But as of August 1, 2025, that costly practice has ended. Thanks to a new state law, the responsibility for paying a rental agent now falls to the party that hired them. Here's what every Massachusetts renter needs to know about this major change.

Before August 1, 2025, it was a common and expensive reality for Massachusetts renters to pay a broker's fee, even if they were the ones who found the listing. A landlord would hire a broker to find a new tenant and then pass the cost directly to the incoming renter. For many, this added a massive financial hurdle to an already difficult process, forcing them to come up with first month's rent, last month's rent, a security deposit, and a broker fee all at once. This could amount to thousands of dollars in upfront costs just to secure a home.

The new rule: The person who hires the broker pays the fee. The new legislation, signed by Governor Maura Healey, clarifies and codifies a fair and straightforward rule: the person who hires the broker is the one responsible for paying their fee.

If a landlord hires a broker, the landlord must pay the broker's fee. They cannot require the tenant to pay this cost. If a tenant hires a broker to represent their interests in finding a rental, the tenant is responsible for that fee. This arrangement requires a written agreement that outlines the terms of the service.

This means if you respond to an apartment listing and the broker is working for the landlord, you do not have to pay them. The landlord foots the bill for their own agent.

Your most important questions, answered:

Can a landlord charge a "leasing fee" or other fees instead?

No. The law explicitly bans landlords from attempting to disguise the broker's fee under a different name, such as an "admin fee," "finder's fee," or "leasing fee".

What about leases signed before August 1, 2025?

The new law is not retroactive. If you signed a lease and agreed to pay a broker's fee before the August 1, 2025, effective date, you are likely still obligated to pay it.

Could this lead to higher rents?

Some real estate professionals argue that landlords may raise rents to cover the new cost of paying brokers. While landlords are legally permitted to set new rent prices, they are explicitly prohibited from adding a "broker's fee surcharge". Market forces and the actions of individual landlords will determine the final impact on rental prices, but the new law removes a significant upfront cost for renters.

What if a landlord or broker tries to violate the new law?

Tenants who believe they are being improperly charged a broker's fee can and should take action. You can file a consumer complaint with the Attorney General's Office. Violators may be subject to significant penalties, including fines or, for brokers, the potential revocation of their license.

The bottom line for Massachusetts renters

This landmark legislation is a huge step toward making housing more accessible and affordable in Massachusetts by eliminating a long-standing financial barrier for tenants. As you look for your next apartment, remember your rights: if you didn't hire the broker, you don't have to pay them.