Renting an apartment in Massachusetts has never been cheap, but beginning this summer, one of the biggest upfront expenses for tenants is about to disappear.

Governor Maura Healey has signed a new housing law that changes a practice renters have complained about for decades. Starting August 1, the responsibility for paying a real estate broker will fall on whoever hired the broker in the first place. In most cases, that means landlords—not tenants—will now be responsible for paying the commission when they hire an agent to market and lease their property.

For thousands of renters across Massachusetts, especially in Greater Boston, the change represents one of the most significant consumer-focused housing reforms the state has enacted in recent years.

For years, many renters entered the apartment search knowing they would need far more than just a security deposit and their first month's rent. It wasn't uncommon for tenants to be asked to pay the first month's rent, last month's rent, a security deposit, and a broker fee equal to another full month's rent before receiving the keys. For someone renting a $3,000 apartment, those upfront costs could easily exceed $12,000, creating a financial hurdle that many prospective renters struggled to overcome.

The biggest criticism of the system wasn't simply the cost—it was who was paying it.

In many rental transactions, tenants never hired a broker themselves. Instead, property owners hired real estate professionals to advertise vacant apartments, coordinate showings, screen applicants, and complete lease paperwork. Even though those services were performed on behalf of the landlord, renters were often expected to cover the commission at the end of the transaction.

The new law is designed to change that.

Under the updated rules, the party who hires the broker will also pay the broker's fee. If a landlord hires a brokerage to lease an apartment, the landlord is responsible for the commission. If a renter chooses to work with a broker to help locate housing, then the renter will continue paying for that service.

While the change may sound straightforward, its impact could be substantial.

Massachusetts consistently ranks among the country's most expensive rental markets, with Boston frequently appearing near the top of national affordability rankings. Rising rents, limited inventory, and elevated living costs have made it increasingly difficult for young professionals, recent graduates, families, and first-time renters to secure housing. Removing one month's rent from the list of required move-in expenses could make it significantly easier for many households to relocate without taking on additional debt or delaying a move.

Supporters of the legislation argue that the reform simply restores fairness to the rental process. Their position is that renters should not be required to pay for a professional service they neither requested nor controlled. Instead, they believe housing costs should more accurately reflect the relationship between the property owner and the broker hired to market the apartment. (mass.gov)

Not everyone sees the change the same way.

Many brokers acknowledge that renters will benefit from lower upfront costs but caution that the economics of leasing apartments have not changed. Marketing properties, scheduling showings, processing applications, and managing lease transactions still require time and resources. Some landlords may simply absorb the additional expense, while others could attempt to recover those costs through higher monthly rents or changes to future lease pricing. How the market ultimately adjusts remains one of the biggest questions heading into the law's implementation.

The legislation also arrives during a period when housing affordability has become one of the defining political and economic issues in Massachusetts. State leaders continue searching for ways to make housing more accessible while encouraging additional residential construction. Programs supporting first-time homebuyers, zoning reforms, and new housing production initiatives have all been introduced over the past year, but affordability remains a challenge for both renters and buyers throughout the Commonwealth.

For real estate professionals, the new law signals an important operational shift.

Brokerages, leasing agents, landlords, and property managers are now reviewing listing agreements, commission structures, and leasing procedures before the August 1 effective date. Some firms may adjust how they market rental properties, while landlords will need to decide whether to continue relying on brokers for every listing or adopt different leasing strategies.

The timing is especially significant because the new rules will take effect just before Massachusetts enters its busiest rental season. Every summer, thousands of college students, healthcare workers, young professionals, and families search for housing before September move-in dates, particularly throughout Greater Boston. This year, many of those renters could encounter a leasing process that looks very different from what previous generations experienced.

While the law won't solve Massachusetts' housing shortage or immediately lower monthly rents, it removes one of the largest financial barriers that has long made renting more expensive than many believed it should be.

As the new policy takes effect, the real estate industry will be watching closely to see how landlords, brokers, and tenants adapt. Whether the savings remain in renters' pockets or gradually shift into other housing costs will become clearer over the coming months. One thing, however, is already certain: Massachusetts has fundamentally changed the way rental transactions will work, marking a new chapter for one of the nation's most competitive housing markets.