Weren't Broker Fees Banned in Massachusetts? No... Here's What the New Law Actually Does.

Amanda George
3 days ago
4 min read

By: Amanda George, George Group Boston, Lamacchia Realty | Weren't Broker Fees Banned in Massachusetts?

Rental season is in full swing, and with it comes one of the biggest misconceptions circulating among Boston-area renters right now: that Governor Maura Healey banned broker fees in Massachusetts. I've been hearing it from renters, first-time tenants, and even some landlords, so let's clear it up. Broker fees were not banned. What changed is who pays them, and that distinction matters a lot, especially if you're apartment hunting this summer.

What the Old System Looked Like

For years, the standard practice in Massachusetts was that tenants paid the broker fee, even when they never hired the broker themselves. A landlord would hire a real estate agent to market a unit and find a tenant, and then pass that cost directly to the renter. In a market like Greater Boston, where a one-bedroom averages around $2,500 a month, that broker fee could easily be another $2,500 on top of first month's rent, last month's rent, and a security deposit. That's close to $10,000 due before you even get your keys.

What the New Law Actually Says

The law, which took effect on August 1, 2025, as part of the Massachusetts Fiscal Year 2026 budget, changed one fundamental rule: whoever hires the broker pays the broker fee.

That's it. Simple in theory, significant in practice. Here's how it breaks down:

If a landlord hired a broker or salesperson to market the unit and find a tenant, the landlord pays the fee.
If a tenant hired their own broker to help them search for an apartment and negotiate terms, the tenant pays the fee.
Landlords are no longer allowed to hire a broker and then pass that cost on to a tenant through a broker fee or any similarly named charge.

The law applies to residential rentals only. It does not affect commercial leases or home purchases.

So Who Can Still Charge You a Broker Fee?

If you reached out to a listing, called about an available unit, or toured an apartment through a broker that the landlord hired, you should not be paying a broker fee under this law. That fee belongs to the landlord.

The only situation where you, as a tenant, would owe a broker fee is if you hired a buyer's agent or tenant's rep broker specifically to represent you in your apartment search. In that case, you entered into a contract with that broker, and you're responsible for their fee.

This is an important distinction because some tenants are still being asked to pay fees in situations where the law says they shouldn't have to. If that happens to you, know that landlords who violate this law can face penalties up to three times the amount they charged, plus attorney's fees.

The Misconception That Could Cost You

The 'broker fees are banned' rumor has spread quickly, and it's understandable why. Headlines moved fast when the law was announced, and government officials keep on saying it. But walking into a rental search believing no broker fees will ever apply to you could leave you caught off guard, especially if you decide to hire your own agent to help you find a place.

Knowing the actual rule puts you in a much stronger position. You'll know when a fee is legitimate, when it isn't, and what to do if a landlord or broker tries to charge you something they shouldn't.

What This Means for the 2026 Rental Market

The law has already started shifting how landlords and brokers operate. Some landlords are now factoring broker costs into the rent rather than a separate fee. Others have simply adjusted how they market units. The Attorney General's office has received complaints about non-compliance, which means enforcement is active, but tenants still need to be informed advocates for themselves.

If you're renting this summer, here are a few things to keep in mind:

Ask your landlord upfront whether a broker was hired to list the unit, and if so, confirm they are covering that fee.
Get any rental terms, including fee arrangements, in writing before signing.
If a broker fee is added to your costs and you did not hire a broker yourself, you can file a complaint with the Massachusetts Attorney General's office.
Review your lease carefully before signing, as some landlords have updated their language to stay compliant while still recouping costs through other means.

Final Thoughts

This law is a real win for renters in Massachusetts, and it's already saving tenants thousands of dollars in upfront moving costs across Greater Boston and the South Shore. But knowing the law exists isn't enough. Understanding exactly what it does and doesn't cover is what will protect you when you're in the middle of a competitive rental search. Hi, I'm Amanda George, and together with Gerard George and George Group Boston we have helped many landlords and tenants navigate the new rental market. If you have questions about navigating the rental or buying market this season, I'm always here to help you think it through.

Renting, Buying or selling in Greater Boston or the South Shore?

Let's connect: georgegroupboston@gmail.com | www.georgegroupboston.com