O
ver the years, lawmakers in Boston and New York have proposed changes to broker fees, which real estate agents charge for finding tenants for landlords. However, these efforts have stalled due to opposition from the real estate industry. In Boston, a broker fee is typically equivalent to one month's rent, while in New York it can range from 10 to 15 percent of a year's rent.

    The fees add to the already high costs of renting in both cities. They originated decades ago when there was an oversupply of rental housing and landlords needed brokers to find tenants. However, with the rise of online listings and increasing housing costs, criticism of the fees has grown.

    In New York City, a new bill aims to shift the burden of broker fees from tenants to landlords. If passed, it would require landlords to pay for any related fees and provide tenants with an itemized written disclosure of all charges. Proponents argue that this change will improve housing affordability for renters, while opponents claim it will harm small landlords.

    Boston has also considered similar changes, but they have been met with resistance from the real estate industry. In 2020, a provision to shift broker fees onto landlords was included in Governor Maura Healey's housing bond bill, but it was ultimately dropped. Mayor Martin J. Walsh had also announced a study on broker fees in 2020, but it never came to fruition.

    The main obstacle to changing broker fees in Boston is the need for approval from the state Legislature through a home-rule petition. This extra hurdle has likely prevented city officials from making a full-fledged push to eliminate the fees. The real estate industry's opposition and Beacon Hill's reluctance to approve housing-related home-rule petitions have also contributed to the lack of progress on this issue.