Starting August 1, Massachusetts is fundamentally changing how apartment leasing works. A new law, signed by Governor Maura Healey, bans landlords from charging renters broker fees—unless the renter hires the broker themselves. This change ends a long-standing practice in Massachusetts where landlords listed apartments with “tenant-paid fees” as the norm, forcing renters to pay for the landlord’s broker whether they wanted one or not.
Now, if a landlord hires a licensed agent to market their apartment, the landlord is responsible for paying that broker’s commission. Renters will only face a fee if they actively choose to engage a broker for their own apartment search.
For tenants, this is a significant financial shift. In cities like Boston and Cambridge, renters were often forced to pay an extra month’s rent as a broker fee, alongside first, last, and security deposits—totaling up to four months of rent upfront. That model priced many people out of the market, especially early-career professionals or renters without deep savings.
As of August, that barrier is coming down.
While renters may celebrate the elimination of automatic broker fees, the market isn’t giving up the money quietly. Many landlords are already raising rents to offset the cost of leasing commissions. Some have made price adjustments in real-time, with rental listings for August and September reflecting these increases.
For small and mid-sized property owners, this is more than just an operational annoyance—it’s a major shift in budgeting. Leasing fees that used to be offloaded to renters will now come directly from owners’ bottom lines. With other costs like repairs, maintenance, and property taxes continuing to rise, landlords are looking for ways to balance the books. Raising rent is the fastest—and most predictable—solution.
But this strategy isn’t without risks. The market is more competitive than it was in previous years. Inventory has loosened, supply is stronger, and renters are price-sensitive. Push too hard on rent increases, and landlords could find themselves with vacant units heading into the off-season. Winter vacancies are expensive and often lead to price reductions anyway. This is the moment for landlords to get realistic about demand, timing, and how far they can push pricing before losing qualified tenants.
There’s a silver lining in all of this. The end of routine broker fees for renters may help improve the overall leasing landscape in Massachusetts. For years, the market has been flooded with duplicate listings and brokers cutting corners. This change will force landlords and agents to streamline operations, cut out inefficiencies, and prioritize professionalism.
Owners who want to stay competitive will need to rethink their leasing strategies. They’ll need to align pricing with market conditions, plan for seasonal demand shifts, and partner with brokers or property managers who bring real expertise—not just transaction volume. The days of sticking a listing online with inflated pricing and letting desperate renters absorb the costs are over.
Landlords who take the time to adjust now will be better positioned for long-term success. Those who ignore the change will likely face longer vacancies and shrinking margins.
This law doesn’t just affect landlords and tenants—it signals a broader shift in how housing will be marketed and leased in Massachusetts. Boston has long been one of the few major U.S. cities where renters routinely footed the bill for a landlord’s broker. With New York City outlawing this practice last year, Massachusetts is now following suit.
The market is adjusting in real-time. Some landlords are frustrated. Some renters are relieved but cautious, wondering if the fee savings will simply show up in higher rents. Either way, the game has changed.
Moving forward, success in this new environment will come down to smart execution, honest pricing, and better alignment between owners, agents, and tenants. The question is no longer whether the system will change—it’s how well each stakeholder is prepared to adapt.