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Sigh of aid from overtaxed renters
Opinion

Sigh of aid from overtaxed renters

Scoopico
Last updated: July 19, 2025 1:16 pm
Scoopico
Published: July 19, 2025
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A lot of the housing disaster debate in Massachusetts has been centered on what to construct and the place.

Many cities are opting in to the MBTA legal guidelines generally referred to 3A whereas others are rejecting the legislation and persevering with the talk. What’s lacking from the dialog is who we’re constructing for. Tenants make up a good portion of the state’s inhabitants – roughly 37% of households throughout Massachusetts — and in Boston, that quantity rises to 65%, with practically two-thirds of residents renting their houses.

Homeownership stays out of attain for a lot of, particularly communities of shade.  For instance, solely 38% of  Black households are householders and 33% of Hispanic households are householders, whereas 70% of White households are householders. These disparities mirror lasting impacts of systemic boundaries, from exclusionary zoning to the racial wealth hole, that proceed to form housing entry throughout the state.

As we proceed to speak about the place and the way to construct, we should additionally heart renters in ongoing housing debates. I’m proud to introduce two provisions: banning dealer’s charges and an alternate fee plan to safety deposits that might doubtlessly minimize upfront prices for tenants in half.

Banning compelled dealer charges helps – not hurts – our housing market.

Massachusetts is on the cusp of delivering a long-overdue win for renters. After years of sky-high upfront housing prices – together with first month’s hire, final month’s hire, a safety deposit and a dealer’s charge – the FY26 price range contains language that lastly bans the apply of forcing renters to pay dealer charges – until they’re those who rent the dealer. It’s a easy precept: you pay for the service you request. And beginning this August, it is going to be legislation.

As one of many legislators who filed this language in January and a shepherd of this provision within the Reasonably priced Houses Act (AHA), I’m proud to see it grow to be a actuality so rapidly. It’s a reminder that after we prioritize our folks, we will act with urgency and influence.

Let’s be clear about what this transformation does and doesn’t do.

It does cease the unjust apply of shifting dealer prices onto tenants who had no say in hiring a dealer. It does put a reimbursement in renters’ pockets, generally over $3,000 value. And it doesn’t improve hire costs.

You’ll have heard that if tenants don’t pay dealer charges, landlords will simply elevate the hire. However let’s take into consideration how the housing market really works.

Rents are already priced at what the market will bear. If landlords may cost extra, they already would. The concept dealer charges are by some means holding hire costs down is simply not true. In actuality, these charges add to the general value burden on tenants, forcing folks to tackle debt, delay strikes, or settle for worse housing simply to keep away from additional bills.

Let’s have a look at the information.

After New York Metropolis’s dealer’s charges ban went into impact this 12 months, Boston took the lead of the #1 costliest metropolis within the nation to hire. The presence of dealer charges didn’t maintain Boston’s rents down—it helped push them up.
Boston is the final main metropolis within the U.S. to eliminate this outdated and unjust apply. With this new legislation, we’re catching as much as what ought to be the usual in every single place: equity and transparency in housing prices.
Safety deposits may very well be changed by insurance coverage funds.

Brokers’ charges reform isn’t occurring in a vacuum. The Massachusetts Legislature can also be exploring options to safety deposits, one other heaping upfront value. Pending rules, we’re proposing programs the place tenants and landlords may enter an settlement the place the tenant pays a small month-to-month premium on a rental insurance coverage plan as an alternative of placing down 1000’s of {dollars} upfront.

It is a sensible, renter-first resolution that acknowledges the truth most working households face: the problem isn’t simply hire, it’s the upfront prices which might be preserving folks out of housing alternatives. Safeguards for this provision are being labored out to make sure that the tenant has a selection, that the tenant doesn’t overpay, and that the owner has to provide a duplicate of the insurance coverage coverage. On this case, the owner could be the beneficiary and would use the premium for misplaced hire, legal professional’s charges and precise injury – which may add as much as a lot a couple of month’s hire.

Housing is a elementary proper, and our legal guidelines ought to uphold that precept. Mixed, these two provisions would permit tenants to start a lease by paying solely first and final month’s hire — an necessary step towards affordability and stability for renters throughout the state.

Sen. Lydia Edwards is the state Senator for the Third Suffolk District and Former Chair of the Joint Committee on Housing.

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