Mass. Gov. Maura Healey says she'll move to do away with renter-paid broker fees

Matthew Medsger, Boston Herald on Jan 13, 2025

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BOSTON — If the governor has her way, Bay State renters will soon be off the hook for pricey broker fees, which will instead have to be paid by the renting landlords.

Offering a glimpse into her upcoming legislative priorities, Gov. Maura Healey on Monday said she plans to offer an outside section to the fiscal 2026 budget that would require real estate brokers to collect their fees from the property owner instead of prospective tenants.

It’s only fair, Healey said.

“Broker fees are an unfair cost for renters, and they should not be on the hook to pay for someone they didn’t hire,” she said in the policy announcement.

“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. 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,” she said.

According to the governor’s office, the median rent for a one-bedroom apartment in Massachusetts is “about $2,500” and brokers typically get about a month’s rent for marketing a rental unit.

That means broker’s fees can push the upfront cost of renting a median priced apartment to $10,000, when considering many property owners will also seek a first and last month’s rent, as well as security deposit.

Housing and Livable Communities Secretary Ed Augustus said that changing who foots the bill for the broker doesn’t just ease the price of renting for families, it gives them options.

“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,” he said in a statement.

Lt. Gov. Kim Driscoll said the move is in keeping with other initiatives by the state to boost housing availability, like the Affordable Homes Act and the MBTA Communities Law.

“We’re jump-starting housing production across the state, which will lower costs, 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,” she said in a statement.

A similar rule made it halfway through the Legislature last year, when Senate lawmakers added a provision to their version of a housing bill which would have made it so that whoever hired the broker paid their fees. According to the governor’s office, in most cases that would be the landlord and not the renter.

House lawmakers did not include that measure in their version of the housing bill, and it was not included at passage.

Healey’s proposal, offered as a preview of the 2026 agenda she’ll likely detail on Thursday during this year’s “State of the Commonwealth” address, was met with signals of support by Senate President Karen Spilka. The Ashland Democrat said she applauds the plan to “eliminate renter-paid broker fees, which reflects a priority the Senate championed and one which remains a central focus of the Senate.”

“By working together, we can save residents thousands of dollars when they move, make it easier to live in the community you love, and ensure businesses have access to the talent they need to thrive. I look forward to reviewing the Governor’s proposal. Let’s make this the session in which we eliminate unfair renter-paid broker fees,” she said.

A similar rule has already been signed onto by a dozen House lawmakers this session, titled “An Act to promote equity among lessors,” which would require that “any fee shall only be paid by the party, lessor or tenant who originally engaged and entered into a contract with the licensed broker or salesman.”

The governor’s version of the state budget is due to lawmakers by January 22.

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