Big change coming to the Massachusetts rental market: starting August 1, brokers can only collect a fee from the party that hired them. That means no more surprise broker fees for renters when the landlord’s the one who hired the agent.
Whether you’re a landlord who lists rental property or a tenant getting ready to move—this law affects how broker fees work, who pays them, and what needs to be disclosed upfront.
🔑 For Landlords
✅ What’s Changing
You can no longer pass the broker fee to the tenant unless the tenant hired the broker directly.
If you (the landlord) contract with a broker to find a tenant, you are responsible for paying that broker’s fee.
💼 Listing Property?
You must disclose in writing who you’ve hired and who will be paying the fee.
If you advertise a unit, you cannot list it with a tenant-paid fee unless the tenant is the one who hired the broker.
No more “landlord’s agent, but tenant pays” model. That arrangement is now prohibited.
🧠 Strategy Shifts
You may:
- Budget for broker fees as part of your leasing cost.
- Consider in-house leasing staff or digital platforms.
- Adjust rent carefully if absorbing broker costs—though this could face market pushback.
⚠️ Legal/Compliance Tips
Have a written agreement with your broker clearly stating the relationship and fee.
Use clear language in lease listings that avoids misleading fee expectations.
Understand designated agency if you use a large brokerage — they may have separate agents for landlord and tenant representation within the same firm.
🧾 For Tenants
✅ What’s Changing
You will no longer be forced to pay a broker fee unless you hire a broker yourself.
If the landlord hires the broker, they pay the fee—not you.
🧭 If You Want Representation:
You may choose to hire your own broker, in which case you’ll sign an agreement and pay their fee.
That fee must be disclosed in writing before you agree to lease terms.
👀 Things to Watch For:
Ask upfront: “Who hired the broker?”
Be wary of listings trying to “sneak in” tenant-paid fees unless you’ve signed a tenant representation agreement.
Clarify whether any fees are included in rent or billed separately.
💡 Tips to Protect Yourself
Request a written disclosure of who the broker represents and who pays.
If you don’t want to pay a fee, ask to only view units where the landlord pays the broker.
Know that you still have the right to hire someone to help you find a rental—you just can’t be forced to do so by the landlord’s agent.
