Luna Realty · For Massachusetts Landlords

Who pays the broker fee in Massachusetts?

Short answer: whoever hires the broker. As of August 1, 2025, a landlord who hires the listing broker pays that fee — and cannot pass it to the tenant. Here is what the law actually says, why it changes the math for owners, and how to list for a flat $499.

Effective August 1, 2025

A plain-English explainer for owners — not legal advice. When you are ready to list correctly under the new rules, Luna Realty is the listing broker you hire, for a flat $499.

What actually changed

For decades, Massachusetts had an unwritten default: a landlord would list a unit through a broker, and the incoming tenant would pay that broker a fee equal to a full month’s rent. Renters routinely faced first month, last month, a security deposit, and a broker fee before they could get the keys — thousands of dollars stacked on top of the move. The state moved to end that.

As of August 1, 2025, Massachusetts law ties the broker fee to the party who actually hired the broker. If a tenant retains an agent to hunt for apartments on their behalf, the tenant can be charged for that service. But if you, the owner, hire a broker to list and lease your unit, the fee is yours — and you cannot make the tenant pay it as a condition of the lease.

For owners this is a genuine shift in economics, not just paperwork. The listing fee did not disappear; it moved onto your ledger. A broker who charges a full month’s rent is now charging you a full month’s rent. That single fact is why so many Waltham and Greater Boston owners are rethinking how — and how much — they pay to fill a vacancy.

The law in four points

What every Massachusetts landlord should understand before signing the next lease.

Whoever hires the broker pays

The heart of the law is simple: the party that hires the broker is the party responsible for the broker’s fee. If a tenant engages an agent to find them a place, the tenant can be charged. If you, the owner, hire a listing broker to market and lease your unit, that is your cost — it belongs to your side of the deal.

You cannot pass the listing fee to the tenant

This is the change that catches owners off guard. When you hire the listing broker, you cannot turn around and require the tenant to pay that fee as a condition of renting. The old default — landlord lists, tenant pays the month’s broker fee — no longer works when the landlord is the one who hired the broker.

The penalties have teeth

This is not a guideline. Improperly charging a tenant a fee you were responsible for can expose you to penalties of up to three times the fee, plus attorney’s fees, under Massachusetts Chapter 93A (the consumer-protection statute). A single mishandled lease can cost far more than the fee itself.

The fee still has to be paid by someone

The law changes who pays, not whether a broker gets paid. If you hire a broker at a full month’s rent, that is now unambiguously your expense. Which is exactly why the size of that fee suddenly matters so much more to owners than it used to.

The owner-friendly answer

Make it your cost — just make it $499

If the fee is now yours to pay, the only question that matters is how big it is. Hire a traditional listing broker and you owe a full month’s rent — on a typical Waltham unit, roughly $2,800 to $3,300. Hire Luna Realty as your exclusive listing broker and you owe a flat, one-time $499. Same responsibility under the law, radically different number.

And it is still full service. The $499 covers pricing from live comps, syndication to Zillow, Apartments.com, and rentluna.com, showings, applicant screening, and a compliant Massachusetts lease. There is no upfront charge: you pay the $499 only when your unit is actually rented. It is the clean, compliant, inexpensive way to be the party who hired the broker.

Broker-fee law questions, answered

Who pays the broker fee in Massachusetts now?

Under the law effective August 1, 2025, the party who hires the broker pays the fee. If a renter hires an agent to represent them, the renter can be charged. If a landlord hires a listing broker to market and lease the unit, the landlord pays — and cannot pass that fee to the tenant.

Can a landlord still charge the tenant a broker fee?

Not for a broker the landlord hired. When you engage the listing broker, that fee is your responsibility and cannot be required of the tenant. A tenant can only be charged for a broker the tenant themselves chose to hire.

What happens if I charge the tenant anyway?

Improperly charging a tenant a fee you were responsible for can trigger penalties of up to three times the fee plus attorney’s fees under Massachusetts Chapter 93A. It is a real financial and legal risk, not a technicality — one lease handled wrong can dwarf the fee.

When did the law take effect?

August 1, 2025. Leases and listings from that date forward are governed by the “whoever hires the broker pays” rule.

So how do I list without a month’s-rent bill landing on me?

That is exactly the problem the flat fee solves. Instead of owing a broker a full month’s rent — commonly $2,800 to $3,300 on a Waltham unit — you list exclusively with Luna Realty for a flat, one-time $499. It is your cost, cleanly and legally, and it is a fraction of a month’s rent. You even pay it only when the unit rents.

Is this page legal advice?

No. This is a plain-English overview to help owners understand the change, not legal advice for your specific situation. For questions about a particular lease or dispute, consult a Massachusetts attorney. What we can do is list your unit correctly under the new rules for a flat $499.

List correctly, for a flat $499

Luna Realty is a licensed Massachusetts brokerage based in Waltham. We are the listing broker you hire — full service, one flat fee, paid only when your unit rents.

481 Main St, Waltham, MA 02451 · This page is general information, not legal advice.