Understanding the 2025 Broker Fee Law: What Massachusetts Landlords Need to Know.
Starting August 1, 2025, Massachusetts will require that the party who hires a broker pays the broker’s fee—a clear departure from past practice of tenant-paid fees, unless specifically negotiated and disclosed in writing. Application fees to tenants are also restricted under the new law.
While this change is meant to protect renters, experts caution it may unintentionally lead landlords to raise monthly rents to offset their broker costs.
Lessons from New York: A Head Start for You
When New York enacted its similar FARE Act this June:
Average rents jumped ~15% in just one week, from ~$4,750 to $5,500 in many listings Wall Street Journal / New York Post.
About 2,000 listings vanished overnight, suggesting landlords temporarily pulled rentals to recalibrate pricing.
Despite initial noises, data revealed rent increases slowed to a modest 5% over the following months, similar to the broader market trend Business Insider.
This pattern reveals a key insight: initial disruption leads to recalibration, after which markets stabilize—especially in slowing conditions.
📈 What This Means for You in MA
You’ll pay more upfront—but with smarter pricing and marketing, you’ll lease faster and at better terms.
As the market slows over the next year, we have time to recoup that extra cost with an effective strategy.
Disruption is already happening now, in mid‑July—don’t let hesitation leave you exposed.
This isn’t a hypothetical: early tenant objections and listing delays are already surfacing in Metro Boston.
How Martin PM Is Already Ahead of the Curve
Updated lease templates and disclosure protocols for full compliance
Marketing messages crafted to account for fee shifts
Proactive tenant communications to minimize friction
Pricing strategies that protect your bottom line while avoiding market missteps
Our goal? Keep your properties leased efficiently and your returns protected during this transition.
Final Word: Strategic, Not Reactive
The new law isn’t a burden — it’s an opportunity. With expert guidance, you can:
Maintain competitive rent pricing
Reduce vacancy duration
Avoid legal risk or fee disputes
Let us manage the change so you don’t have to.
🔗 Want peace of mind? Talk to our team today
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