BOSTON (WHDH) – In Massachusetts, unlocking the door to a new apartment has meant shelling out a small fortune—first month’s rent, last month’s rent, a security deposit, and in many cases, a broker’s fee.
But starting Friday, renters could feel some relief. A new provision included in the $61 billion state budget requires whoever hires the broker—typically the landlord—to pay the fee.
Broker’s fees often amount to one month’s rent, adding thousands of dollars to move-in costs. Tenant advocates say the new law will make housing more accessible.
“Before this, the cost to rent a new apartment could easily reach $12,000 to $15,000, which is just prohibitive for many renters, particularly people working paycheck to paycheck,” said Carolyn Chou, executive director of the advocacy group Homes for All Massachusetts.
For many renters, that upfront burden has been a barrier to leaving unaffordable apartments.
“Do I think this makes housing more affordable? No. Do I think this makes accessing housing a lot easier for tenants? Absolutely,” said Mark Martinez, a housing attorney for the Massachusetts Law Reform Institute. “It allows people to find new housing and prevents them from being trapped in housing that is too expensive for them to live in, and too expensive to leave.”
Landlord advocates are raising concerns about potential ripple effects of the law. In a tight market where demand outpaces supply, especially in Boston, they argue many landlords will raise rents to offset the costs.
“Landlords are well within their rights to take the broker’s fee, divide it over 12 months, and recoup the cost through rent,” said Doug Quattrochi, the executive director of the trade association Mass Landlords.
However, tenant advocates argue rent increases are already the standard in Massachusetts, and blaming them on the new law is misleading.
“Raise your hand if your rent increased this year, last year, or the year before,” said Martinez….