BOSTON — Renters in Massachusetts are no longer required to pay fees to brokers who were hired by a landlord after a new state law that took effect on Friday.
The law states that the fees can only be paid by the person who first engaged and hired the broker to list or find a rental property.
The new rules are a relief to many renters who are fed up with paying a full month’s rent payment for a broker’s fee every time they move.
Some who are amid apartment hunting are realizing it may end up costing them more and not just once.
“Landlords who have to now pay a fee are factoring it into rent. Rents are actually going up to offset the cost of the broker fee,” said Van French, Director of Rentals at Gibson Sotheby’s International. “It’s not as ideal as people thought.
French told Boston 25 News that a one-time upfront payment could now be something renters are stuck paying every year.
He said that especially applies in Boston’s most desirable neighborhoods, where demand is high, and inventory is low.
“If it were a $3,000 apartment, now it’s $3,300. They’re continuously paying each year a higher rate than they would have,” he said. “In the end, they end up paying more, unless they leave year after year.”
Renters can still pay a broker’s fee if they’re the ones who sought out and hired a broker.
“Moving to this city was a shocking reality of broker fees,” said Clare Romano, who recently moved from Minnesota. “I think we’re moving that barrier for people to move here and move around in the city.”
Attorney General Andrea Campbell’s office says anyone who’s asked to pay a broker they didn’t originally hire should file a complaint. Landlords could face fines for illegal fees, and brokers could lose their license
For those hoping to cut around costs and score an apartment from an online ad, renters are advised to be cautious about fake listings.
The Boston Police Department is warning people about a rise in apartment rental scams preying on the high demand for housing in the city.
“These scams typically involve individuals fraudulently posing as landlords or rental agents. Scammers often post fake listings for properties that either do not exist, have already been rented, or have been copied from legitimate advertisements,” said a BPD community alert issued on Friday.
This is a developing story. Check back for updates as more information becomes available.
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