Apartment Rental Fees
By Stephen McCarthy
The rules around broker fees in Massachusetts have changed. While broker fees are still allowed, who pays the fee is now being regulated.
For decades, the fee structure was dictated by market conditions.
- When vacancy rates were high and apartments were hard to rent, property owners typically paid the fee.
- When vacancy rates were low and apartments were in high demand, tenants usually paid the fee.
Now, as a licensed Massachusetts real estate agent, I can only charge a fee to the party that hires me.
- If you hire me to help you find an apartment to rent, I will charge a fee equivalent to one month’s rent.
- If you hire me to list your apartment for rent, I will charge one month’s rent to list and advertise the unit.
The goal of this regulation is to reduce upfront housing costs for renters. However, many in the industry expect this change to drive rents higher, as property owners may pass the broker expense back to tenants through increased rent.
Property owners should factor broker fees into their overall operating expenses. The good news? These fees may be tax-deductible as part of maintaining an income property. Be sure to check with your accountant.
This post was edited for grammar and clarity using Microsoft Copilot.
