Opposition Mounts Against Broker Fees in Beacon Hill and Boston City Council
In a groundbreaking move, state lawmakers and local officials are advocating for a new law that would shift the responsibility of paying broker fees from tenants to landlords. The push for this change comes as a response to the increasing financial burden faced by renters in the Boston area, who often have to shell out hefty sums in addition to first and last month’s rent and a security deposit.
Governor Healey Supports Fee Elimination
Governor Maura Healey made a bold statement on Tuesday by expressing her full support for the abolition of tenant-paid broker fees. These fees, which can amount to about one month’s rent, are typically paid by renters to brokers who may have played a minimal role in connecting them with their new apartment and its landlord. Healey’s remarks have sparked a wave of opposition against these fees at both the state and local levels.
During an appearance on GBH’s “Boston Public Radio,” Healey emphasized the need to address housing affordability concerns in Massachusetts. She highlighted the impact of broker fees on driving people out of the state and called for immediate action to eliminate them. While the governor’s stance on abolishing these fees is clear, the current focus is on making landlords responsible for paying broker fees when they are the ones who hire the brokers.
Legislative Efforts and Local Initiatives
Efforts to shift the burden of broker fees from renters to landlords have gained momentum in recent months. The state Senate included a provision in a housing policy bill last year that would require landlords, not tenants, to pay these fees. However, the policy did not make it to Governor Healey’s desk due to lack of support from House negotiators.
In a move to address this issue, State Rep. Tackey Chan of Quincy introduced legislation that clarifies the party responsible for hiring the broker as the one obligated to pay the fee. This proposal aligns with the sentiments expressed by the editorial board of The Boston Globe, as well as several state representatives who argue that passing these fees onto tenants exacerbates housing challenges and perpetuates inequities.
Boston City Council’s Role
Locally, Boston City Council is taking action to address the issue of broker fees. Council President Ruthzee Louijeune and Councilor Liz Breadon have filed a home rule petition that would hold the party hiring the broker accountable for paying the fee. This initiative aims to combat housing discrimination, promote housing equity, and alleviate the financial burden on renters in the city.
In the face of Boston’s housing shortage and escalating rental costs, advocates are calling for meaningful reforms to ensure fair and affordable housing options for all residents. With mounting pressure on Beacon Hill and the Boston City Council, the conversation around broker fees is gaining traction, signaling a potential shift in how these fees are handled in the rental market.