Massachusetts has just passed a major change to how broker fees work in the rental market, and it officially went into effect August 1, 2025. If you’re a landlord in Greater Boston (or anywhere in the state), this law will directly affect how you handle leasing and advertising your units.
At South Boston Property Managers, we know that changing rental rules can feel overwhelming — so here’s a clear breakdown of what’s changing, what fees are still allowed, and what steps you should take now to stay compliant.
What’s Changing with Broker Fees?
For Brokers
Real estate brokers can no longer charge tenants a “broker’s fee” unless the tenant specifically hires them to help find an apartment.
Even then, the Attorney General’s guidance says certain conditions must be met before a broker can collect that fee.
For Landlords & Property Managers
Starting August 1, 2025, if you hire a broker to market or lease your rental property, you — not the tenant — are responsible for paying the broker’s fee.
The state has made it clear: landlords can’t pass this cost on to tenants, either directly through a “broker’s fee” or indirectly through another fee with a different name.
You also cannot require a tenant to work with a specific broker just to view an apartment.
What Fees Can Still Be Collected from Tenants?
Even with the new law, landlords and property managers are still allowed to collect:
First month’s rent
Last month’s rent
A security deposit (up to one month’s rent)
The actual cost of a new lock and key
Anything outside of this list is not permitted.
What Should Landlords Do Right Now?
Here’s how to prepare:
Remove tenant-paid broker fee language from your listings.
Review agreements with any brokers or leasing agents you currently use.
Update lease templates so they reflect the new rules.
Train your leasing staff (or make sure your property management partner does) so prospective tenants hear a consistent, compliant message.
How We Can Help
This shift is part of the state’s push to make renting more affordable, but it also puts more financial responsibility on landlords. As a result of this new law, most real estate broker’s will now charge the landlord a full month’s rental fee to find a prospective renter. At South Boston PM, we only charge ½ months’ rent to landlords for all of our units and offer our monthly property management services for only 6% of collected rent ongoing from there. We handle everything from marketing vacant units, signing and updating lease agreements, extensive tenant screening, monthly rent collection, detailed financial reporting, and 24/7 maintenance. If you’d like help navigating this change — or want us to take leasing and property management completely off your plate — reach out today.
South Boston Property Managers
https://www.southbostonpropertymanagers.com
(857)663-0711