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July 2nd, 2025- By Mike DelRose Jr.-The Massachusetts Legislature just took a big step toward balancing the scales in our housing market. Included in the Fiscal Year 2026 budget is a provision that would ensure rental broker fees are only paid by the party who actually hires the broker. It’s a simple idea that mirrors how we already handle buyer and seller agency in real estate sales. And frankly, it’s long overdue.
As someone who has spent years working in both marketing and real estate, I see this proposal as a win for transparency and fairness. Too often, tenants are burdened with a financial load that goes far beyond their first month’s rent. They’re paying for the last month, a security deposit, and a broker fee—sometimes totaling four times the monthly rent. Even worse, those broker fees often pay for services that exclusively benefit the landlord: advertising, tenant screening, showings, and lease negotiations.
Governor Maura Healey’s budget originally proposed the complete elimination of tenant-paid broker fees. While this final version doesn’t go that far, it does make the responsibility clear. If a broker works for a landlord, the landlord pays. If a tenant hires a broker to represent them, then the tenant pays. It’s not complicated. It’s aligned with how agency works in most real estate transactions.
The disconnect has been especially glaring in Boston. With an annual flood of college students and limited housing near transit and universities, demand has driven up prices while quality lags far behind. In neighborhoods like Allston and Brighton, I’ve had contractors tell me they’re shocked by the conditions of some units. Yet every year, tenants are paying more for less and often feel like they’re being rushed into decisions with little support or advocacy.
Boston Apartments-May The Odds Ever Be In Your Favor
There’s a reason tenants feel like the system is stacked against them. The structure incentivizes speed and volume over service and quality. I’ve had more than one client ask why there isn’t a review system for landlords and tenants—similar to what we see in short-term rentals. It’s a great question, and the answer likely lies in fragmented listing systems, data costs, and lack of industry-wide incentives to build something better.
That said, not every rental story is negative. In the suburbs surrounding Boston, many of the landlords I work with take a more measured and respectful approach. The pace is slower. The negotiations are thoughtful. And while the challenges aren’t absent, the experiences are generally more positive.
Ultimately, this reform is about correcting an imbalance. It brings the rental process more in line with the fairness we expect in real estate sales. While I understand that some agents and landlords may need to adjust their models, the broader goal of improving access to housing and removing financial barriers is one I fully support.
If I have one point I’d want considered in this provision, it would be appropriately addressing application fees. Currently, the law states a landlord cannot charge an application fee for an apartment, but it can be required by a brokerage. As it stands, a landlord or broker could be responsible for paying a third parties screen fee multiple by the number of tenant applicants. Whether that is paid by the broker or landlord, it could create an uncapped cost that could result in substantial higher rent prices. That increase in cost could theoretically be passed down to the tenant regardless. Some Agents I have spoken with about the proposal thinks this will happen regardless, which may be the case. Even so, an amortized cost-recuperation on behalf of the landlord would be much more affordable than charging exorbitant up front cost. If passed, it remains to be seen how the market will react.
These views are my own and offered with respect to my peers in the real estate community. Many of us work hard to uphold ethical practices in every transaction. But if we’re honest, this change helps move the industry in the right direction. Governor Healey has until July 10 to sign the budget. If she does, this new rule goes into effect on August 1, 2025. I believe it will bring much-needed relief to renters while holding our industry to a higher standard of fairness and transparency.
