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What's next for broker's fees in Massachusetts? Breaking down the two Beacon Hill proposals
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The Celtics will look to even the series against the Knicks tonight at TD Garden — and surely they can't miss as many three-pointers as they did in Game 1, right? (Right?!)
Tipoff is nice and early at 7 p.m. But first, the news:
Brokering a deal: Is this the year Massachusetts cracks down on broker's fees? The lines have officially been drawn in the debate on Beacon Hill. As part of its budget proposal yesterday, the Massachusetts Senate renewed its push to shift the responsibility of paying broker's fees from renters to landlords, in most cases. However, the House budget plan passed last week takes a notably different approach. Here's a breakdown of the current law, the two proposals and what's next:
- The status quo: Technically, current Massachusetts state law says landlords aren't allowed to "require" tenants to pay a broker's fee. But in the state's competitive housing market, the fees — often equal to one month of rent (i.e. several thousand dollars) — have been begrudgingly swallowed by renters who want their application accepted. When combined with first and last month's rent and a security deposit, the fees can push the upfront costs of moving into five figures.
- The Senate's proposal: Just like the bill they passed last year, the Senate's budget includes language that says broker's fees "shall only be paid by the party, lessor or tenant, who originally engaged and entered into a contract" with the broker. That means renters could still be on the hook if they hired a broker for help with a housing search. But it would ensure they would not have to pay a fee to a broker originally hired by a landlord to list and show a property. (It would also effectively prohibit situations where the property owner and tenant split the fee.)
- The House's proposal: The House also included language in its budget saying renters shall not be charged a broker's fee — but with a big exception. The proposal said renters may have to pay if they "initiated contact" with the broker, including "by responding to an advertisement or listing," as long as the fee is disclosed and agreed to in writing. Given the fact most renters find apartments via online ads and listing sites like Zillow, policy experts say that likely wouldn't change who pays the fee. It just adds a disclosure requirement.
- What does the governor think of this? Healey threw her support behind the Senate's proposal earlier this year. Asked about the House's proposal last week, Healey press secretary Karissa Hand reiterated the governor's position that "renters shouldn't be on the hook for paying a broker that they didn't hire."
- What's next? The Senate is planning to vote on its budget later this month. After that, the two chambers will hash out the differences in private negotiations that often drag into the summer. (Psst renters, landlords, brokers — we want to hear from you. Tell us what you think about the debate by filling out this form.)
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Getting REAL: Today marks the beginning of the first phase of REAL ID enforcement. However, Homeland Security Secretary Kristi Noem confirmed yesterday people without REAL IDs, passports or any other accepted alternative will still be allowed to fly. Noem said they may just have to go through an extra step of security. (As we covered last week, the real REAL ID enforcement date isn't until 2027.)
- PSA: NPR has more tips here for people who still don't have a REAL ID. And if you're flying in the near future, consider getting to the airport a little early, in case the new rules result in backups at the security line.
- Go deeper: Where did REAL ID come from? And why has it taken so long?
Taking off: A new budget airline is coming to Boston's Logan Airport. Beginning Nov. 20, the low-cost Dominican airline Arajet will begin flying direct from Boston to the Dominican Republic four days a week. Tickets sales go live today, with one-way flights starting at $170 and connections to over a dozen other Caribbean and Latin American destinations. (Arajet, which launched in 2022, is hoping to make the D.R. a hub for flight connections to Latin America, as well as cater to Boston's large Dominican population.)
- While the flight prices may start low, be aware that Arajet does charge additional fees, like $30 for carry-on luggage and $20 for your first checked bag.
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