Effective Aug. 1: MA Law Changes Who Pays Residential Rental Broker Fee
Beginning on August 1, 2025, brokers’ fees in Massachusetts will be paid by the party who hired the broker, not solely by the tenants.
Governor Maura Healey first introduced the provision in her January 2025 budget proposal, stating the impact of broker fees on rising housing costs across Massachusetts. This proposal followed a decision made by the New York City Council last year to prohibit fees paid by tenants, making Boston the only major city in the United States where the practice is widespread.
This provision, included in Section 43 of the FY2026 Budget and added to Massachusetts General Laws, Chapter 112, Section 87DDD ½, was enacted for the purpose of regulating who is responsible for the payment of brokers’ fees. As passed by the Massachusetts Legislature and signed by Governor Healey on July 4, 2025, the new provision states:
“A licensed broker or salesperson may solely contract with a prospective tenant to find rental residential real property for a tenant and present an offer to lease to the landlord or landlord’s agent and negotiate on behalf of the tenant or may solely contract with a landlord or landlord’s agent to find a tenant for a property. 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 salesperson.”
For questions about what this legislation means for you, contact your Bernkopf attorney or the authors of this client alert, Lydia Chesnick and Brooke Foster.
Lydia can be reached by email at lchesnick@bernkopflegal.com or by phone at 617.790.3425.
Brooke can be reached by email at bfoster@bernkopflegal.com or by phone at 617.790.3411.
ABOUT THE AUTHOR
Lydia G. Chesnick
Partner
Lydia is a recognized thought innovator in real estate and business law, advising on acquisitions, sales, financings, leasing, and the hospitality industry. She is dedicated to understanding her clients' legal and business needs, focusing on solutions that yield tangible results. Lydia's practice includes a diverse client base, from individuals to large companies, and she specializes in asset and wealth preservation and business succession planning. She is known for her commitment to quality and responsiveness.