Broker fees in Massachusetts now follow a single rule: whoever hired the broker pays the broker. Since August 1, 2025, a landlord who engages a broker to fill a vacancy must pay that broker directly and cannot pass the cost to the tenant. If you hired the broker yourself to help you find an apartment, you pay. That is the whole framework, and it applies to every residential lease in the Commonwealth.
Who Pays Under the 2025 Law
Massachusetts amended M.G.L. c. 112, § 87DDD½ so that a licensed broker may contract with either a landlord or a tenant, but the fee is owed by whichever party originally hired and entered into a contract with the broker.1Mass.gov. Mass General Laws c112 87DDD-1/2 A broker cannot represent both sides of the same transaction.
For most renters, this ends a long-standing practice. Landlords used to hire brokers to list their units and then require the incoming tenant to pay the fee at lease signing. That is now illegal. A landlord who hires the broker must pay that broker and cannot make the fee a condition of the lease, fold it into the first month’s rent, or rename 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 the building’s size, the landlord’s identity, or the rent amount.2Executive Office of Housing and Livable Communities. Frequently Asked Questions About Residential Rental Broker’s Fees It does not reach commercial leases or home purchases.
When You Still Owe a Fee
You can still hire your own broker, and if you do, you pay. The arrangement has to be real: a written agreement between you and the broker, with the broker working on your behalf to search for units, negotiate terms, and present offers.1Mass.gov. Mass General Laws c112 87DDD-1/2
A landlord is allowed to require that you work with a specific broker to view or apply for a unit. That is permitted. What is not permitted is making you pay that broker. If the landlord brought the broker into the deal, the landlord owes the fee, even if the broker is the person who showed you the apartment and processed your application.2Executive Office of Housing and Livable Communities. Frequently Asked Questions About Residential Rental Broker’s Fees
How Much Brokers Charge
Massachusetts does not cap broker fees. The amount is negotiable between the broker and whoever hired them. The industry benchmark across the Commonwealth has long been one month’s rent, and that figure remains the most common. Some brokers charge a flat fee or a percentage of the annual lease value instead.
If you are hiring your own broker now that landlords cover the cost for their own listings, you have room to negotiate. One useful comparison is to spread a one-time fee across the lease term and weigh the monthly equivalent against higher-rent “no-fee” alternatives.
What a Landlord Can Charge Before You Move In
The broker fee rule works alongside a strict limit on what a landlord can collect at the start of a tenancy. Under M.G.L. c. 186, § 15B, a landlord or their agent may require only three payments at or before move-in:
- First month’s rent.
- Last month’s rent, calculated 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 list is complete.3General Court of Massachusetts. Massachusetts General Laws Chapter 186 Section 15B Application fees, move-in fees, and any other upfront charge beyond these three categories are not allowed. If you also hired your own broker, your realistic maximum move-in cost is four months’ rent, though many landlords do not collect all three permitted charges.
Get the Fee Disclosure and a Receipt
Any broker who charges a tenant a fee has to hand you a written notice at your first in-person meeting. The notice must state the fee amount, how and when it is due, and whether any portion is still owed if no lease is signed. The broker signs it and includes a license number, and you sign to acknowledge it. If you refuse to sign, the broker records your name and refusal on the form.4Legal Information Institute. 254 CMR 7.00 – Apartment Rentals Keep your copy. It is the most useful document you will have in a dispute.
When you pay, ask for a receipt showing the broker’s name, license number, the date, and the amount. A broker who refuses to provide one is worth reporting to the Board of Registration of Real Estate Brokers and Salespeople.
If You Were Charged Illegally
A landlord who charges a tenant for a broker the landlord hired may owe 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.
If you paid a fee you think was illegal, gather what you have: the listing identifying the broker, messages showing the landlord sent you to that broker, the fee disclosure form, your payment receipt, and the lease. Triple damages make these claims worth pursuing even when the underlying fee is modest.