Working with Realtors

Changes to Broker Fees Effective August 1, 2025

What’s Changing?

Starting August 1, 2025, Massachusetts law mandates that only the party who hires the broker—either the landlord or the tenant—must pay the broker fee. This means:

  1. If a landlord hires the broker, the tenant does not pay the fee.
  2. If a tenant initiates contact with a broker and signs a disclosure, they may be liable for the fee, even if it’s verbal or informal.

 Important: How to Protect Yourself

  • Ask Upfront: “Are you a broker?” “Who hired you for this listing?” “Will the renter be expected to pay a broker fee?”
  • Request Written Fee Disclosures: Always ask for a written agreement that outlines who pays the fee. Don’t rely on verbal assurances; verbal engagement can still trigger liability.
  • Read Everything Carefully: Review all paperwork before signing or attending showings. Look for terms like “exclusive representation” or “designated agency.”
  • Walk Away If Unsure: If the terms aren’t clear or you’re uncomfortable, don’t proceed.
  • Choose Trusted Brokers: If you want to hire an agent to assist in your search, visit the Off-Campus Services Agent/Broker Page for a list of options. Not all agencies charge broker fees.

 Warning: Things to Avoid

  • Open Houses: Attending without clarifying broker engagement may result in fee liability. Don’t sign in for the event without understanding fee responsibility.
  • Emails, Calls, or Texts: Initiating contact with a broker can be interpreted as hiring them.
  • Assumptions: Don’t assume “no fee” just because it wasn’t mentioned. Always ask and confirm.

 

Good Practice Standards are guidelines the Boston Town & Gown Association recommend for all real estate professionals working with Boston University students. Your knowledge of these guidelines prior to working with an agent will be helpful.

Agency compliance is recommended but not enforced.

Disclaimer: The Boston Area Off-Campus Housing & Student Life Coalition has informed Real Estate Professionals/Agents of these standards, but does not investigate or endorse that the professionals/agents are in compliance.

Good Practice Standards:

  • The real estate agent/agency will be forthcoming with clients that they represent the property owner, not clients.
  • Agree to support and comply with all state and local housing regulations, including the City of Boston’s Rental re-inspection (CBC 9-1.3, full code inspection requested within 45 days) and Rental Standards (CBC 9-1.4; Move-in day fine-able offenses) ordinances; and Boston’s zoning code requirement which limits the number of off-campus undergraduate students that share an apartment to four.
  • The Agency and all its agents agree to show clients actual available properties that are listed with them.
  • The Agency must maintain a physical commercial zoned office location, where clients/potential clients can go to have questions answered.

You Should Know:

  • A licensed realtor links prospective tenants with prospective landlords.
  • Be sure to ask about the fee, whether or not it is negotiable, and when it must be paid.
  • You pay the realtor’s fee only if you locate and rent an apartment through that agency. Otherwise, you pay nothing for any effort they invest in the search.
  • Don’t feel pressured to rent any apartment or to sign any document. Read the rental application and all documents carefully before signing. Feel free to bring any documents and questions to Housing Resources for review.

 

Disclaimer: Housing Resources provides information to Boston University Medical Campus students, faculty and staff members solely as a courtesy, and in an advisory and referral capacity. Boston University does not endorse any realtors. Contact with persons listed herein must be conducted independently and at your own risk.