A major shift is coming to the Boston rental market. On June 30, 2025, Massachusetts lawmakers officially passed a broker fee reform bill that will go into effect on August 1, 2025. This new law will significantly change who pays the broker’s fee in rental transactions, moving the financial responsibility away from tenants when the broker is working on behalf of the landlord.
Here’s what renters, landlords, and real estate professionals need to know before the law goes into effect.
What the New Law Says
Beginning August 1, landlords will be required to pay the broker fee when they hire a real estate agent or broker to lease their apartment. Under the current system, tenants have often paid thousands of dollars in fees to a broker who was representing the landlord. The new law aims to correct that by clearly assigning the cost of the service to the party that hired the broker.
If a tenant chooses to hire a broker to help them find a rental, they can still do so, and they will remain responsible for paying that broker’s fee. The law only applies to situations where the broker was retained by the landlord.
Why the Law Was Passed
Massachusetts has been facing ongoing challenges with housing affordability, especially in cities like Boston, Cambridge, and Somerville. Many tenants have found themselves unable to move due to the high upfront costs of renting, which include first month’s rent, last month’s rent, a security deposit, and a broker fee. In many cases, the broker fee was required even if the tenant never requested a broker or had any direct relationship with them.
Advocates argued that the system was fundamentally unfair. Renters should not be forced to pay for a service they did not request. The new law aims to make the rental process more transparent and affordable, particularly for lower-income residents who often face the steepest hurdles when trying to secure housing.
How This Will Impact Renters
Once the law takes effect, tenants will no longer be required to pay a broker fee when the broker was hired by the landlord. This means significantly lower upfront costs and a clearer understanding of who the broker is actually working for. The move is expected to open up more housing opportunities for renters across the state, particularly in competitive markets like Boston.
Tenants who want dedicated help in their apartment search can still hire their own agent, but they will be paying that agent directly in those cases. The law does not prohibit tenant-paid fees when the broker is acting on the tenant’s behalf.
What It Means for Landlords and Agents
Landlords who have relied on brokers to lease their properties will now need to adjust their business practices. Broker commissions will become part of the landlord’s cost of doing business, similar to property management fees or advertising expenses. Some landlords may choose to raise rents slightly to offset the cost, while others may opt to list their units without an agent.
Real estate agents will also need to adapt. While tenant-paid commissions will decline, there may be new opportunities to build stronger relationships with landlords and become their go-to leasing partner. This change may shift the rental market toward a more professional and service-oriented model, with brokers offering more value directly to the property owners who are now footing the bill.
Statewide Application
Although Boston has been the center of the debate, this law applies to all of Massachusetts. Any rental transaction involving a landlord-hired broker will fall under the new rules beginning August 1, regardless of the city or town. Enforcement and interpretation may vary slightly depending on local ordinances, but the core requirement is now statewide.
What to Expect Next
The rental market will likely see some adjustments as landlords, agents, and tenants adapt to the new structure. While some landlords may seek alternatives to working with brokers, others will embrace the change and factor it into their leasing budgets. Renters should experience a more transparent and affordable application process, with fewer surprise fees and lower upfront costs.
This law marks a turning point in how rentals are handled in Massachusetts. Whether you are a tenant preparing to move, a landlord planning your next lease, or a real estate agent navigating the changes, now is the time to understand your responsibilities and options under the new system.
Amo Realty’s Support for Renters and Landlords
As the new broker fee law goes into effect, Amo Realty is here to guide both renters and landlords through the transition. For renters, we can help you find apartments where the broker fee is already covered by the landlord, making your move more affordable and transparent. For landlords, our experienced agents can take over the leasing process from start to finish, ensuring your property gets maximum exposure while remaining fully compliant with the new law. Whether you're listing or leasing, Amo Realty is ready to support you every step of the way.
