Massachusetts

Gov. Healey announces plan to eliminate renter-paid broker fees

Her proposal will require the fee to be paid by whoever hires the broker, which is typically the landlord

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Gov. Maura Healey is calling for an end to real estate broker fees in Massachusetts.

Massachusetts Gov. Maura Healey announced Monday that her Fiscal Year 2026 budget proposal will include a section to eliminate renter-paid broker fees, an idea she had floated during a radio interview last week.

“Broker fees are an unfair cost for renters, and they should not be on the hook to pay for someone they didn’t hire,” Healey said in a statement. "We’re proud to be proposing this change that will save renters thousands of dollars – making it possible for more young people, seniors and families to stay in Massachusetts, help businesses attract the best talent, and put more money back in people’s pockets for groceries, health care, and other needs.

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Most renters in the state are required by default to cover the cost of a broker fee when they rent an apartment, which can be equal to a full month's rent. Healey's proposal will require the fee to be paid by whoever hires the broker, which is typically the landlord.

To combat climbing rents, New York City has enacted a new policy putting some of the financial burden on landlords, and many renters would like to see Boston follow suit.

The median rent for a one-bedroom apartment in Massachusetts is about $2,500, meaning a renter would have to pay nearly $10,000 up front for first and last month's rent, security deposit and the broker's fee.

Healey had expressed support for the idea of eliminating broker fees during an appearance on GBH Radio last week.

"I think they should be abolished. I think they should go away," the governor said after a listener emailed the show to promote the idea of eliminating the fees some renters have to pay to brokers when signing a lease. "I totally support that, and support taking action to make that happen. You know, this is one of the things when it comes to affordability. We're an expensive state, right?"

The Massachusetts Senate last year included in its housing bill a policy requiring broker's fees to be paid by landlords rather than tenants, but House negotiators did not agree to the measure.

Senate President Karen Spilka welcomed the news Monday.

"By working together, we can save residents thousands of dollars when they move, make it easier to live in the community you love, and ensure businesses have access to the talent they need to thrive. I look forward to reviewing the Governor’s proposal," she said. "Let's make this the session in which we eliminate unfair renter-paid broker fees."

At least one key House member, recent Consumer Protection and Professional Licensure Committee chairman Rep. Tackey Chan, has already filed legislation that mostly mirrors what the governor said she will propose.

State House News Service contributed to this report.

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