Renters in New York City and Massachusetts shell out a lot of money when leasing a new apartment. In addition to paying first and last month’s rent and a security deposit, many renters in Boston and New York also historically paid a broker’s fee. A broker’s fee, usually equivalent to one month’s rent, goes toward the agent who helped lease the unit.
Both Massachusetts and New York City — two of the top three most expensive rental markets in the country — previously allowed landlords to pass the broker’s fee on to the tenant, even if the landlord was the one who hired that broker. But recently passed laws in Massachusetts and NYC prohibit landlords from charging tenants broker fees if the landlord hired the broker. Tenants are only responsible for broker fees if they hired a broker to represent them.
