With New York State banning real-estate brokers from charging fees to renters, Mayor Marty Walsh said today he's forming a group to look at apartment broker fees in Boston.
In a statement, Walsh said:
The housing crisis in our city requires a comprehensive, and multi-pronged approach to achieve our goal of creating and preserving new housing, while also ensuring that our housing is accessible to all residents. I am proud to pull together this working group to move us forward in determining how broker fees are impacting our renters and our housing market in Boston. This is another tool we are putting forward to tackle the underlying challenges of housing affordability in Boston.
Walsh said he will name members of the group by the end of this month and that he will "include a wide range of stakeholders."
Currently, it is legal for brokers to charge a fee for finding an apartment for somebody - who might then also have to pay the property owner first month's rent, last month's rent and a security deposit equal to one month's rent.
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Comments
"Good ideas"
By jorf
Fri, 02/07/2020 - 6:32pm
Rent control and NIMBY politics has wreaked total havoc on NYC and SF real estate. I don't know why anyone would think they are model cities for what to do to fix real estate.
Seattle and Minneapolis are much better models. Granted they have more to work with, but they aggressively overhauled zoning and went on a building boom. Seattle has even seen rents falling. That's the answer, not this stuff.
Good intentions don't always mean good outcomes.
Over Regulations
By ellen (not verified)
Fri, 02/07/2020 - 1:42pm
There is no rule you have to use a RE broker. You pay to play. There is no rule you have to live in Boston.
"If you don't like it, leave"
By tape
Sat, 02/08/2020 - 6:29pm
"If you don't like it, leave" is not a valid argument.
Possible good effect?
By Neighborhood Dude (not verified)
Fri, 02/07/2020 - 3:39pm
Just a thought that occurred to me: if we ban broker's fees to tenants, there might be a positive side-effect: Perhaps landlords will be a little less likely to evict current (rent-paying) tenants, if the landlord knows they might have to pay the broker's fee themselves when searching for a new, replacement tenant.
I'm not sure what all the effects (including unintended consequences) of this change might be, but it seems reasonable that if we lower the financial barrier to finding an apartment, the number of homeless might drop at least somewhat. Not every homeless person is penniless, or mentally ill, or addicted -- some of them just have limited funds available.
My $2,400 month Hyde Park
By redheadedjen
Fri, 02/07/2020 - 3:54pm
My $2,400 month Hyde Park apartment needed first month, last month, security deposit and broker fee which is $9,600. I don't have that kind of money sitting around so I took it out of my 401k. If I have to move again, I do not know what I will do.
Guessing this will eventually just go awry
By jorf
Fri, 02/07/2020 - 6:29pm
There are few things that make me furious like everything related to the Boston rental market. I have moved close to 10 times (including in and out of an apt after 3 months that burned me for a $1500 fee) and the amount of money collected to show me a unit for 3 minutes is absurd.
I'm not confident in this measure going the way renters want it though (though probably not as disastrously as the cry for rent control would be in the long run)
My guess it will go like this:
1. Realtors still have a near monopoly on listings
2. Base rental fee will just be higher, including the fees now…
3. …which means your likely raise in rent next year had a higher starting point
4. …which could mean you're just going to push overall amounts paid higher than they would otherwise be
I think if they wanted to impact up front cost, it'd probably be better to have cut requirements about last months rent instead.
At the end of the day, the problem is still supply and demand. We need way more housing. Full stop. The rest is spitting in the wind.
Because the cost of a broker
By anon (not verified)
Mon, 02/10/2020 - 6:36am
Because the cost of a broker fee would suddenly cause the landlord to lose money on the property or break even?
Rent has risen way more than inflation and continues to do so. That easily covers the cost of the brokers fee. Or they can just not hire a broker.
Landlord paying the brokers fee is not intrinsically tied into the rent.
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