What is a broker’s fee?
A broker’s fee, also known as a listing fee, leasing fee or finder’s fee, is a payment made to a real estate broker for their services in finding a rental property for a tenant or finding a tenant for a rental property. Often, a landlord will use a broker or salesperson (or real estate agent) to list, market and lease the apartment on the landlord’s behalf. A broker and their agent – salesperson (or real estate agent) – can also be engaged with the tenant to find an apartment. The law does not prohibit tenants from engaging brokers and their salesperson or real estate agents to help tenants find an apartment.
What is the new law on tenant-paid broker’s fees in Massachusetts?
As of August 1, 2025, broker’s fees for rental units must be paid by the person who hired the broker or salesperson. If you didn’t hire a broker or salesperson, you shouldn’t be paying their fee. This means that if a landlord chooses to hire a broker or salesperson, they are responsible for paying that broker or salesperson themselves.
A landlord cannot add their broker’s or salesperson’s fee as a requirement for a tenant to sign a lease. Landlords can require tenants to work with their broker or salesperson so long as the landlord is paying for their fee. But landlords cannot require tenants to pay the landlord’s hired broker or salesperson themselves prior to renting a unit.
A broker or salesperson can charge a tenant for their services only if the tenant chooses to engage them and they work exclusively on the tenant’s behalf in negotiations with a prospective landlord.
When does this law take effect?
This law becomes effective August 1, 2025.
What if the landlord says I still must pay the broker’s fee?
If you did not hire the broker or salesperson yourself, then you should not have to pay the broker’s fee. If you hired a broker or salesperson to support your search for an apartment, and the broker or salesperson works on your behalf, then you are expected to pay the broker or salesperson for their services. Before engaging with you in any way, the broker or salesperson must present you with a fee disclosure form.
Who else can I contact if I need help?
If you think you’ve been improperly charged a broker’s fee, you may contact the Massachusetts Attorney General’s Consumer Advocacy and Response Division online or call 617-727-8400 for information about the law.
Can a landlord raise rent to make up for the broker’s fee?
Some landlords and brokers have said that landlords may increase monthly rents to make up for the lost broker’s fee. Landlords are not allowed to include a broker’s fee surcharge onto a tenant’s rent.
A landlord may decide what rent to set for a new tenancy, so long as they provide proper written notice and follow applicable laws, including fair housing laws. It is up to tenants whether they want to enter into a tenancy agreement at the rate proposed by the landlord.
Additional information for tenants
If I contact a broker through a listing posted online, does that mean I need to pay them?
If you contact a broker or salesperson that is advertising a rental listing, you can inquire if they are representing the landlord. If they are representing the landlord, then the landlord is responsible to pay their broker’s fees. You should never be forced to pay a broker to apply for an apartment if the broker originally entered into a contract with and engaged with the landlord. You should pay a broker only if the broker is working on your behalf rather than providing services to the landlord.
If you believe a broker is engaging in activity in violation of this law, you may file a complaint with the Division of Occupational Licensure.
Does this apply to home purchases or commercial leases?
No. This law only applies to residential leases. It does not apply to commercial leases or home purchases.
As a tenant, when do I have to pay a broker or salesperson?
As a tenant, you are only responsible for paying a broker or salesperson if you hired them to help you search for an apartment. Brokers and salespersons may advertise their services to you, but landlords or their agents can’t condition the rental of an apartment on you paying a particular broker or salesperson they hired.
Additional information for landlords, brokers and salespersons
When am I required to pay for a broker’s fee and when does the tenant pay for it?
As of August 1, 2025, landlords are not permitted to hire a broker or salesperson and pass on the cost to a tenant through a broker’s fee or any similarly named fee. If you, the landlord, hire a broker or salesperson to support the advertising and lease negotiations for a unit, then you are responsible for paying the fees yourself. If a prospective tenant hires a broker or salesperson that advocates on their behalf, then the tenant is responsible for paying their own broker or salesperson.
Are there any exceptions to this new rule?
No.
As a landlord, can I require prospective tenants to hire my preferred broker?
Conditioning apartment viewing on the tenant hiring the landlord’s preferred broker or salesperson is not allowed.
What if the tenant has already paid a broker’s fee or signed a document saying they would do so?
If it is after August 1, 2025, landlords are not permitted to charge a broker’s fee to a tenant for a broker or salesperson that the landlord hired. If it is after August 1, 2025, and a landlord and tenant have executed a lease for rental property before August 1, 2025, the broker or salesperson may properly collect the broker’s fee from the tenant, even if the broker or salesperson was engaged by the landlord, because the terms of the lease were agreed upon and executed prior to the law coming into effect.
Can the broker’s fee be included in other fees?
No. Admin fees, selection fees, finders’ fees, leasing fees, and similarly named fees are not allowed. Including the broker’s fee in the rent is not allowed if it is structured to reimburse for a broker’s fee (e.g., raising first or last month’s rent).
What happens if I don’t comply with the new law? Are there penalties?
Landlords may be liable to pay a penalty up to 3 times the amount charged, in addition to any attorney’s fees. Brokers and salespersons may face fines or a revocation of their license by the Board of Registration of Real Estate Brokers and Salespersons.
Additional information for brokers
What does the new broker fee law mean for me as a broker?
Beginning August 1, 2025, only the person who hires a broker or salesperson is allowed to pay that broker's fee. If you are hired by a landlord to list and lease a unit, the landlord may not charge your fee to the tenant. If you are hired by a tenant to help find an apartment, that tenant must pay your fee. You cannot collect a fee from a tenant if they did not hire you directly.
Can I still charge a broker’s fee?
Yes, brokers and salespersons can still charge fees. However, you may only charge the person who hired you. If you are hired by a landlord, they are responsible for your fee. If you are hired by a tenant, that tenant is responsible for your fee. Charging a tenant or landlord who did not hire you is prohibited under the new law. You must work only on behalf of the party that hired you and that will pay you. You are not allowed to represent both the landlord and the tenant.
How do I properly disclose a broker’s fee?
You must provide written disclosure before a lease is signed. This written disclosure must state who hired you, who will be paying your fee, what the fee amount is, and whether any other party is also compensating you. For more information, see 254 CMR 7.00 and Real Estate Brokers and Salespersons consumer fact sheet | Mass.gov
What if a tenant contacts me through my online listing — can I charge them a fee?
If a tenant contacts you through a listing but you have been hired by the landlord, then the landlord must pay your fee. You cannot charge a tenant unless they independently choose to hire you and enter into a written agreement. In that case, you would represent the tenant, and they could be charged a fee.
What happens if my firm or I violate the new law?
Violating this law could result in serious consequences, including fines, suspension or loss of your broker license, and civil penalties. Tenants may be entitled to triple the amount of any illegal fee paid, along with attorney’s fees and costs, under the Massachusetts Consumer Protection Act (Chapter 93A).
Can I still work with landlords to rent apartments?
Yes. You can continue to offer marketing, screening, and leasing services to landlords. However, if the landlord hires you, the landlord must pay your fee directly. You cannot require or request payment from the tenant if the landlord hired you.
Does this rule apply to room rentals, short-term leases, or sublets?
Yes. The law applies to all residential leases in Massachusetts, regardless of lease length or unit type. It does not apply to commercial leases or home purchases.