Renters no longer on the hook for brokers fees in Massachusetts

In Massachusetts unlocking the door to a new apartment has meant shelling out a small fortune first month s rent last month s rent a measure deposit and in a great number of cases a broker s fee But starting Friday renters could feel particular relief A new provision included in the billion state budget requires whoever hires the broker typically the landlord to pay the fee Broker s fees often amount to one month s rent adding thousands of dollars to move-in costs Tenant advocates say the new law will make housing more accessible Before this the cost to rent a new apartment could easily reach to which is just prohibitive for plenty of renters particularly people working paycheck to paycheck explained Carolyn Chou executive director of the advocacy group Homes for All Massachusetts For various renters that upfront burden has been a barrier to leaving unaffordable apartments Do I think this makes housing more affordable No Do I think this makes accessing housing a lot easier for tenants Absolutely reported Mark Martinez a housing attorney for the Massachusetts Law Improvement Institute It allows people to find new housing and prevents them from being trapped in housing that is too expensive for them to live in and too expensive to leave Landlord advocates are raising concerns about prospective ripple effects of the law In a tight sector where demand outpaces supply especially in Boston they argue multiple landlords will raise rents to offset the costs Landlords are well within their rights to take the broker s fee divide it over months and recoup the cost through rent explained Doug Quattrochi the executive director of the contract association Mass Landlords However tenant advocates argue rent increases are already the standard in Massachusetts and blaming them on the new law is misleading Raise your hand if your rent increased this year last year or the year before disclosed Martinez Rent is already increasing and increasing at really high rates Pinning rent hikes on broker s fees is really disingenuous Under the new law renters will still pay a broker s fee if they hire the broker themselves But if the broker has a preexisting relationship with the landlord the cost shifts to the property owner This change is expected to reshape broker relationships in the rental region Chosen landlords may choose to screen tenants themselves while others will likely contract with a broker more regularly for reduced rates It may end up changing the realm but it may change it for the better noted Todd Kaplan a senior attorney at Greater Boston Legal Services Brokers who have a formal relationship with the landlord could have a regular flow of apartments from that landlord Technically Massachusetts law has long barred landlords from charging renters broker s fees By statute landlords are only allowed to collect first and last month s rent a guard deposit and the cost of changing the locks But because the law was weakly enforced and landlords have so much leverage in the housing area tenants often paid the fee to secure housing This time housing advocates stress enforcement will be different They say Attorney General Andrea Campbell has promised to uphold the law and they re urging renters to document violations Meanwhile property owners are expressing frustrations with how the plan came together They say the new law comes at the height of leasing season when largest part renters move on Sept Landlords are also concerned the law will disrupt jobs in the real estate area and they say they were largely left out of discussions on Beacon Hill No one in the private sector or in real estate leadership was contacted to help formulate a plan stated Demetrios Salpoglou CEO of Boston Pads You need the ruling body to come together with business leaders to craft effective framework Despite their differences both landlords and tenant advocates agree on one thing solving the housing problem requires addressing a key issue supply We need a lot more housing disclosed Quattrochi That s going to take zoning reorganization residents commitment and smart infrastructure capital We do have to build reported Martinez But we also have to help keep people in their homes now