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Healey rolls out proposal to eliminate tenant-paid brokers’ fees
“The landlord can make their own arrangements,” Healey said on Boston Public Radio last week.
Just days after Governor Maura Healey joined the chorus of opposition to broker fees, the tenant-paid fees — which can equal a full month of rent — will be abolished through an outside section in her budget proposal, her office said.
Right now, most renters in the state pay a broker fee when they sign a lease, according to a statement from Healey’s office on Monday. The fee often comes on top of first and last month’s rent, as well as a security deposit, making renting an apartment quite costly. Healey said with median rent for a one-bedroom in the state at $2,500, a renter would pay nearly $10,000 up front.
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If the proposal goes through, whoever hires the broker, which is normally the landlord, will be responsible for any fees.
“We’re proud to be proposing this change that will save renters thousands of dollars – making it possible for more young people, seniors and families to stay in Massachusetts, help businesses attract the best talent, and put more money back in people’s pockets for groceries, health care, and other needs,” Healey said in a statement.
Last week on GBH’s “Boston Public Radio,” Healey said she supported the elimination of the fees.
“I think they should be abolished. I think they should go away. I totally support that and support taking action to make that happen,” Healey said. “The landlord can make their own arrangements.”
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Her sentiments echo efforts from elected officials in Boston, Somerville, and Cambridge. Boston City Councilor Enrique Pepén, Cambridge City Councilor Jivan Sobrinho-Wheeler and Somerville City Councilor Willie Burnley Jr. joined forces on Instagram to advocate against “forced brokers’ fees,” meaning the renters pay the fees.
“I appreciate the governor listening to the voices of local leaders who believe renters shouldn’t be fleeced due to political inaction,” Burnley told Boston.com Monday. “This is the first of what I hope will be many important steps we can take to bring relief to working class folks and create more housing affordability.”
Pepén noted that Boston and New York were the only major cities in the country that still had broker fees for tenants, before the New York City Council voted in November to shift broker fees to landlords.
The fiscal budget process begins this month and will likely be finalized in June before the start of the new fiscal year in July.
“Broker fees are an unfair cost for renters, and they should not be on the hook to pay for someone they didn’t hire,” Healey’s statement said. “We’re grateful for the Legislature’s consideration of this proposal and look forward to continuing to work together to make housing more affordable across our state.”
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