Are we going to see the elimination of apartment renters paying broker fees?

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Are we going to see the elimination of apartment renters paying broker fees?

Boston apartment renter-paid broker fees may be a thing of the past in the Massachusetts thanks to a new budget proposal from Gov. Maura Healey.

Gov, Healey announced Tuesday that her Fiscal Year 2026 budget proposal includes a section eliminating renter-paid broker fees. 

Currently, Massachusetts apartment renters are required “by default” to cover broker fee costs when renting an apartment, and often that’s the cost of a full month’s rent. 

Healey’s proposal would require the fee to be paid by the individual hiring the broker, which in many cases is the landlord. 

With the median rent for a one-bedroom apartment around $2,500, renters can expect to pay nearly $10,000 in upfront costs, including first month’s rent, last month’s rent, security deposit and broker’s fee, according to the governor’s office.

Healey called the current structure unfair to apartment renters, who should not be “on the hook to pay for someone they didn’t hire.”

“We’re proud to be proposing this change that will save renters thousands of dollars – making it possible for more young people, seniors and families to stay in Massachusetts, help businesses attract the best talent and put more money back in people’s pockets for groceries, health care and other needs,” Healey said. “We’re grateful for the Legislature’s consideration of this proposal and look forward to continuing to work together to make housing more affordable across our state.”

Housing and Livable Communities Secretary Ed Augustus said passing apartment-broker fees onto tenants makes the already high cost of moving even higher. 

“By shifting the cost of broker fees away from renters who do not hire the broker themselves, we can create more mobility in the housing market, allow tenants to have more choice and save residents money,” Augustus said. 

Since taking office in 2022, the Healey-Driscoll Administration has been working to make housing a top priority.

In August, Healey signed the Affordable Homes Act into law, the largest housing bond bill ever filed in the state, paving the way for the production, preservation and rehabilitation of more than 65,000 homes across the state over the next five years.

In October, the state awarded $161 million in grants for local economic development projects in 171 communities aimed at creating thousands of additional housing units statewide.

“Through our Affordable Homes Act and the MBTA Communities Law, we’re jumpstarting housing production across the state, which will lower costs,” said Lt. Gov. Kim Driscoll. “But it’s much harder for people to move into these new homes when they have to pay a whole extra month of rent to a broker that they didn’t even hire. Eliminating renter-paid broker’s fees will make the rental process fairer and less burdensome – because moving is already hard enough!”

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