Effective August 1, renters looking to secure housing in Massachusetts no longer have to pay a mandatory broker’s fee unless they choose to hire one acting on their behalf. For brokers, leasing agents and landlords, it means a new way of doing business.

The change comes as part of a clarifying law that was added to the state budget bill passed in June. Before, many landlords in Massachusetts who hired a broker passed the fee on to the tenant, adding it to the required upfront move-in costs. The broker’s fee typically amounted to one month’s rent. When added to the other usual fees — first month’s rent, last month’s and security deposit — it amounted to four months’ worth of rent due in order to sign a lease.

In a housing market where monthly rent for a one-bedroom averages over $3,500, a

See Full Page