Broker fees in Massachusetts are now paid by whoever hired the broker. Since August 1, 2025, if a landlord engages a broker to fill a vacancy, the landlord pays that fee. A tenant only owes a broker fee if the tenant personally hired the broker to search on their behalf. The rule applies to every residential lease in the Commonwealth, and a landlord who tries to pass the cost to a tenant can be ordered to pay triple damages.
What the 2025 Law Changed
Massachusetts amended M.G.L. c. 112, § 87DDD½ to require that a broker’s fee be paid by whichever party originally hired and contracted with the broker.1Mass.gov. Mass General Laws c112 87DDD-1/2 A broker can no longer represent both the landlord and the tenant in the same transaction. They either work for the landlord to fill a vacancy or for the tenant to find a home.
For years, landlords routinely hired brokers and then made payment of the broker’s fee a condition of signing the lease. That is now illegal. A landlord who hires a broker must pay that broker directly and cannot add the fee to the first month’s rent or relabel it as an “admin fee,” “selection fee,” or “leasing fee.”2Executive Office of Housing and Livable Communities. Frequently Asked Questions About Residential Rental Broker’s Fees
There are no exceptions. The rule covers every residential lease regardless of building size, landlord type, or rent level.2Executive Office of Housing and Livable Communities. Frequently Asked Questions About Residential Rental Broker’s Fees Commercial leases and home purchases are not covered.
When You Still Pay a Broker Fee
You pay only if you hired the broker. If you independently engage a licensed broker or salesperson to search for apartments on your behalf, negotiate lease terms, and present offers to landlords, you owe the fee. The arrangement must be based on a written agreement between you and the broker, and the broker must work exclusively for you during negotiations.1Mass.gov. Mass General Laws c112 87DDD-1/2
Some landlords still require prospective tenants to work with a particular broker in order to view or apply for a unit. That is allowed, but in that scenario the landlord pays the broker. Interacting with a broker the landlord hired does not make you responsible for their compensation.2Executive Office of Housing and Livable Communities. Frequently Asked Questions About Residential Rental Broker’s Fees
How Much Brokers Charge
State law does not cap broker fees. The amount is negotiable between the broker and whoever hires them. The longstanding industry benchmark is one month’s rent, and that remains the most common figure. Some brokers instead charge a flat fee or a percentage of the annual lease value.
Because landlords now bear the cost for broker-represented listings, tenants who hire their own broker have room to negotiate. If you are weighing whether to hire one, compare the fee against the rent difference between no-fee listings and broker-assisted options. Spreading a one-time fee across a 12-month lease gives you an effective monthly cost that is easy to measure against a higher-rent alternative.
What a Landlord Can Charge at Move-In
Broker fees aside, Massachusetts law tightly limits what a landlord can collect before you move in. Under M.G.L. c. 186, § 15B, a landlord may require only:
- First month’s rent.
- Last month’s rent, at the same rate as the first month.
- A security deposit of no more than one month’s rent, held in a separate interest-bearing account with a written statement of the unit’s condition.
That is the complete list.3General Court of Massachusetts. Massachusetts General Laws Chapter 186 Section 15B A landlord cannot add application fees, move-in fees, or any other upfront charge. If you also hired your own broker, the realistic ceiling on move-in cost is four months’ rent.
The Written Fee Disclosure
Any broker or salesperson who charges a tenant a fee must give the tenant a written notice at their first in-person meeting. The requirement is in 254 CMR 7.00, the regulation governing apartment rentals.4Legal Information Institute. 254 CMR 7.00 – Apartment Rentals
The notice states the fee amount, when and how it is due, and whether any portion is still owed if no lease is signed. The broker signs it and lists their license number, and the tenant signs to acknowledge it. A tenant who refuses to sign has that refusal noted on the form.4Legal Information Institute. 254 CMR 7.00 – Apartment Rentals Keep your copy. When you pay, also ask for a written receipt showing the broker’s name, license number, the date, and the amount. Those two documents are your best protection if a dispute arises.
Penalties and How to Challenge an Illegal Fee
A landlord who charges a tenant for a broker the landlord hired can be ordered to pay up to three times the amount charged, plus the tenant’s attorney’s fees, under the Massachusetts Consumer Protection Act (M.G.L. c. 93A).2Executive Office of Housing and Livable Communities. Frequently Asked Questions About Residential Rental Broker’s Fees A broker who participates in the violation faces fines and possible license revocation from the Board of Registration of Real Estate Brokers and Salespeople.
If you paid a broker fee that you believe was illegal, gather your evidence: the original listing showing which broker represented the property, any messages in which the landlord directed you to that broker, the fee disclosure form, and your payment receipt. The triple-damages provision makes these claims worth pursuing even when the underlying fee is modest.