Starting August 1, 2025, Massachusetts is poised to become the latest state to shake up how broker fees are handled in the rental market. Already being dubbed by headlines as a “win for renters”— if you dig just below the surface, the reality is far more complicated.
We’re going to break down what’s really changing and why it could come with unintended ripple effects—especially when it comes to tenant representation and potentially rising rents.
What the New Law Actually Says
While some headlines say “renter-paid fees are banned,” the real change is that fees now follow the person who hired the broker, not automatically the tenant.
- If a landlord hires a broker or agent to list and lease an apartment, the landlord is responsible for paying that broker’s fee.
- If a renter hires a broker they are still responsible for paying the fee and must explicitly agree to pay the broker’s fee in writing.
This mirrors what was passed in New York City in 2023—and as we’ll get into shortly, the market effects there are worth watching closely.
The Hidden Risk: Tenant Representation Will Suffer
What people aren’t talking about is how this bill disincentivizes tenant representation. When renters previously paid their own broker, they had someone advocating specifically for them—guiding the search, explaining contracts, and negotiating lease terms. If renters now avoid brokers to save money, they’re flying solo in a highly competitive market.
Meanwhile, landlords still have professional representation in their corner. That creates an imbalance—and could leave some renters at a disadvantage when navigating complex or high-stakes leases.
Now, What Happened in NYC
Massachusetts isn’t the first state to attempt this kind of reform. In New York City, when a similar change — the Fairness in Apartment Rental Expenses (FARE) Act — passed on December 2024 and took effect on June 11, 2025 tenants initially celebrated.
But within a few short weeks, rents across the city have already surged an estimated 15%, with some landlords simply baking the broker fee into the monthly rent instead of paying it out-of-pocket. This resulted in higher ongoing rent costs, while many renters still lacked dedicated representation in the process.
In effect: the fee didn’t disappear—it just became invisible.
The takeaway?
If you’re a renter: Know your rights—but also know that professional representation is still available and is in your best interest.
If you’re a landlord: Prepare to absorb a new cost—and start strategizing on how to stay competitive and well-leased.