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Boston's Morning Newsletter
Massachusetts' new broker's fee rules take effect Friday. Here's a helpful FAQ
Editor's Note: This is an excerpt from WBUR's daily morning newsletter, WBUR Today. If you like what you read and want it in your inbox, sign up here.
It's Friday. Before we get to the news, a quick programming note: WBUR Today is taking a summer break next week. But don't worry; unlike the Massachusetts Legislature, we'll only be off for a week. See you back in your inboxes on Aug. 11.
Now, to the news:
Broker's fees be gone: Massachusetts' new broker's fees rules are officially in effect. Beginning today, the law requires the fees can only be paid by the person who first engaged and hired the broker to list or find a rental property. It's not an all-out ban on broker's fees. But it does mean renters will no longer be forced pay four-figure fees to brokers who were originally hired by a landlord. This morning, Gov. Maura Healey's office unveiled an FAQ page on the new rules for those in the midst of apartment hunting, with the Sept. 1 moving day coming up fast. Here are some highlights:
- Are there exceptions? Yes. Renters could still have to pay the fee if they're the ones who directly sought out and hired a broker. (For example: someone new to Boston who reaches out to a broker to help them find an apartment fast.)
- What if I reach out to a broker who is advertising an apartment? Listings on websites like Zillow often include a broker contact. And you'll increasingly see agents showing off apartments on Instagram and Tiktok. State officials recommend renters ask the broker to confirm whether they're working for the landlord. You shouldn't pay the fee unless the broker is working on your behalf.
- What if I just signed a lease that includes a broker's fee? Sorry, you may still be on the hook. The rules don't apply retroactively. State officials say brokers can "lawfully collect a fee from a tenant" for recent services if the lease was signed before Aug. 1, even if the broker was originally hired by the landlord.
- Can my landlord pass on the broker's fee in other ways? Yes and no. Landlords may chose to raise the rent to recoup the costs of the fee over time. But what they can't do is just pass it on in the form of another upfront fee.
- How is it being enforced? Attorney General Andrea Campbell's office says anyone who's asked to pay a broker they didn't originally hire should file a complaint. Landlords could face fines for illegal fees, and brokers could lose their license
- Why now? Greater Boston had recently become the last remaining American metro that allowed tenant-paid broker's fees. And while no one thinks the new rules are a fix for the region's exorbitantly expensive housing market, supporters say they will provide some relief from upfront moving costs, which can be "upwards of $10,000." WBUR's Zeninjor Enwemeka has more on the reactions here.
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Cutting back: The vaccine-maker Moderna is laying off about 10% of its workforce — or roughly 500 people. And a spokesperson for the Cambridge-based company told WBUR that "substantial number" of the job cuts are here in Massachusetts.
- Moderna CEO Stéphane Bancel told employees in a letter yesterday the layoffs are a "difficult but necessary" part of the company's effort to trim $1.5 billion by 2027, amid slowing COVID vaccine sales. It comes less than a year after the company announced it was cutting research and development spending, and pushed back its timeline for breaking even from 2026 to 2028.
- Go deeper: CNBC has a good story about how the two pandemic mRNA darlings — Moderna and BioNTech — are now on two different financial paths.
Wrapping up: Before decamping for their August recess, Beacon Hill lawmakers sent a bill to bolster protections for local abortion and transgender care to the desk of Gov. Maura Healey. Both the House and Senate passed a redraft of the bill yesterday, after resolving what leaders described as some "very minor differences." The bill includes a number of updates to the state's 2022 shield law, motivated by recent actions by the Trump administration. (Click here if you need a refresher on the details.)
- Meanwhile: The Senate officially passed its bell-to-bell ban on cellphones in school yesterday by a vote of 38-2. It now heads to the House. And the plan to raise hourly pay for bar advocates (explained in yesterday's newsletter) is now awaiting Healey's signature.
That dirty water: Blue-green algae is back in the Charles River. State officials say a significant cyanobacteria bloom has emerged in the river's lower basin, aka between the Mass. Ave bridge and the Charlestown locks near downtown Boston. It's the second time such a major bloom has developed there in the last year.
- The state advises people "not to swim or swallow water in the area" — in case you needed another reason — and rinse off any water that gets on you to avoid skin or stomach issues. You'll also want to keep your pets out of that part of the river.
P.S.— Which Boston-based company was recently fined nearly a half-million dollars by regulators in Massachusetts? Take our Boston News Quiz.
