Massachusetts landlords are reacting swiftly to a new law eliminating tenant-paid broker fees by adjusting rent prices ahead of the policy’s August 1 rollout. Signed by Governor Maura Healey, the rule shifts responsibility for broker fees to landlords unless a tenant hires a broker by choice. Critics fear the move will simply lead to higher rents, as property owners seek to recover their costs.
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Law Shifts Fee Burden
A new Massachusetts law taking effect August 1 bans mandatory broker fees for renters, except when tenants directly hire a broker. Governor Maura Healey’s administration says the measure is designed to save renters thousands and make housing more accessible, following a similar move in New York City last year.
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Landlords Adjust Rent Prices
Several real estate agents confirmed that landlords are already increasing rents in anticipation of absorbing broker costs. “You’re going to see an uptick of rent right out of the gate,” said Mark Ruane of MGS Group Real Estate. Conversations with landlords suggest this adjustment is happening rapidly as listings hit the market…