Massachusetts Bans Tenant-Paid Broker Fees: What Landlords Should Know

By Sean R. Higgins and Cayla Nyante Brown

As of 1 August 2025, Massachusetts law prohibits landlords and real estate brokers from imposing broker or leasing fees on tenants unless the tenant independently hires the agent. The prohibition, enacted as part of the state’s Fiscal Year 2026 budget, shifts the cost burden of landlord‑hired brokers back onto the party that engaged them—usually the landlord.

For landlords, this statutory change requires a review of current leasing practices. Under the new law:

• A broker or salesperson may only collect a fee from the party who hired them (either the landlord or tenant).
• Dual representation (i.e. a broker representing both landlord and tenant) is disallowed if the broker would collect fees from both sides.
• Advertisements or listings stating “tenant to pay broker fee” must be discontinued.

Violations of the newly enacted law can lead to liability. Tenants may recover up to triple the amount charged, plus attorney’s fees, under the Massachusetts Consumer Protection law, Massachusetts General Laws Chapter 93A.

If you are a landlord, here are compliance steps to consider:

• Review existing leasing and marketing materials. Eliminate any language requiring tenant‑paid broker fees. Ensure your listings, lease addenda, and application materials reflect that only the party who hired the broker pays the commission.
• Review and revise your existing broker agreements. Ensure that engagement agreements with listing agents specify that you, the landlord, will pay the commission, and that no portion may be shifted to the lessee.
• Modify your showings and screening protocols. You cannot condition viewings or application processing on the tenant agreeing to pay a fee to the broker you hired.
• Train your staff and agents. Make sure leasing agents, property managers, and in‑house brokers understand the new legal regime and the prohibition on passing costs to tenants.
• Plan rent adjustments carefully. Some landlords may consider internalizing broker costs by increasing rent, for example. While raising rent may be permissible, landlords should carefully evaluate the competitive rental market and fair housing implications.
• Prepare for disputes. Tenants who believe they were improperly charged may file complaints or lawsuits.
• Establish (or update) record retention policies. Maintain clear documentation of who hired each broker, contract terms, commission invoices, and disclosures.

In sum, this new legal shift does not eliminate broker fees per se, but reallocates them to the party that truly hired the broker. Landlords should review and revise their practices to remain compliant, avoid liability, and maintain competitiveness in the rental market.