MA Landlords: Starting August 1, You’re Paying the Broker Fee — Here’s How to Stay Profitable

A major shift is coming to Massachusetts rental housing and if you're a landlord, it’s going to hit your operating costs directly.

As of August 1, Massachusetts will follow in New York City’s footsteps: landlords, not tenants, will be required to pay the broker fee when they hire a real estate professional to lease their units. This was confirmed in a recent Bloomberg report and marks a significant change in how broker fees are handled in our state.

What This Means for You

If you've been leasing apartments and charging tenants the broker fee, typically equivalent to one month’s rent, that model is ending. Starting August, you’ll be responsible for paying it if you're the one hiring the broker.

So, what happens next?

In all likelihood, landlords across the state will raise rents to offset this new cost. But that comes with its own risks: if rent control gains traction in response, it could put downward pressure on property value, something every investor should keep an eye on.

How to Get Ahead of the Change

Having worked with investors and property owners for over a decade, I know that success in real estate comes from proactive planning, not reactive decisions. That's why I’m offering a strategy designed to help you stay compliant, protect your margins, and position your property for continued success:

• Free Property Valuation - Know where your asset stands in today’s market and how to prepare your records to be ready to sell (leasing documents, lead law notices if applicable, estoppel agreements, etc.).
• Current Rental Comps - Get real data on what similar units are leasing for, now and after common upgrades, so you can price with confidence.
• 20% Off Full-Service Leasing - If you sign a listing agreement by September 1, 2025, I’ll discount my full-service leasing package by 20%. That includes marketing, lease documentation, MLS exposure, and tenant screening, with no upfront fee. 

And of course, it keeps you fully compliant with the new law: the landlord pays the fee, not the tenant.

Let’s Talk Strategy

I've helped landlords and multifamily investors navigate plenty of regulatory changes over the last 10+ years. The ones who act early and align with the market tend to come out ahead.

If you’d like to discuss what this shift means for your portfolio and how to move forward strategically, we’d love to chat. Contact us today to get started.