Governor Maura Healey has put forward a proposal that could significantly alter the responsibility for broker fees within the Massachusetts rental market.
This initiative, incorporated into the state’s budget plan, aims to transfer the financial burden of broker fees from tenants to landlords, as part of a broader effort to address escalating housing costs and improve availability.
“We’ve got to make it more affordable for people to be able to rent apartments,” Governor Healey remarked. “We need to build more housing, build more housing, build more housing. We’re working on that every day, because we’ve got to lower costs.”
Statistics from the governor’s office reveal that the average rent in Massachusetts stands at around $2,500 per month. However, prospective tenants may find themselves facing initial costs exceeding $10,000, which include first and last month’s rent, security deposits, and broker fees.
Demetrios Salpoglou, CEO of Boston Pads and a board member of the Small Property Owners Association, expressed concerns regarding the potential consequences of the proposed shift. “Our real serious matter is the shockingly low supply of availability that we have in the city of Boston and the greater Boston area,” he stated in a conversation with NewsCenter 5’s Sera Congi.
Salpoglou cautioned that rental prices could escalate if the proposal is enacted, placing landlords under the obligation to cover broker fees. He emphasized that lawmakers should prioritize increasing housing supply over shifting existing costs to landlords.
Boston Mayor Michelle Wu has chimed in, suggesting that incorporating broker fees into rental amounts could ease the financial stress on renters. “Even that spacing it out, in cities that we’ve seen this change made, it just makes sure that you don’t have to only limit housing to the people who can somehow come up with first, last, brokers’ fees, all that,” she noted.
As the state addresses housing affordability concerns, this proposal stands out as a significant legislative change. The discussion around broker fees showcases the complexity of the rental market and the challenges faced by both tenants and landlords.
The proposed budget, which includes this initiative, amounts to $61 billion for the fiscal year and has already received legislative approval, with votes of 139-6 in the House and 38-2 in the Senate. It is now set to be reviewed by Governor Maura Healey for final approval.
With housing affordability continuing to be a pressing issue, this proposal reflects a growing recognition of the barriers many renters face when entering the market.
As Governor Healey and local leaders work to address these challenges, stakeholders from various sectors are encouraged to engage in discussions regarding sustainable solutions to improve housing access and affordability throughout Massachusetts.
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