Apartment Fees: Are You Paying Too Much?

According to Massachusetts State Law, landlords and property owners are only allowed to charge the following fees:

• First month’s rent

• Last month’s rent

• Security deposit

• Lock/key fees

Some potential tenants will choose to work with a licensed realtor to help find housing. A licensed realtor may also charge you a broker fee and possibly an application fee. The broker fee is typically 1 month’s rent and paid by the tenant. Application fees are dependent on the realtor but should be reasonable, roughly $35 - $50. Ask your realtor what the application fee is used for to determine if it’s reasonable and note any non-refundable clauses on the application. It’s important to remember to review a full copy of the lease before completing the application, especially if there are non-refundable clauses!

How to avoid being surprised by fees

All realtors should be able to provide you with a fee disclosure form and payment schedule. This. Will include all upcoming payments, the amount of each payment, and when the payments are due. Landlords should also be able to provide clear due dates for upfront payments.

Are there fees that cannot be refunded, even if I don’t sign the lease?

It’s possible that there are non-refundable fees associated with finding a place to live. It’s important to thoroughly review documents, applications, and realtor contracts and even check the fine print on these documents. These should note any non-refundable clauses. Another tip is to ask for a sample lease and addendum so you can determine if you want to move forward before signing any binding documentation.

How to avoid extra fees

• Work directly with a landlord instead of hiring a realtor. Realtors may save you time and know of many different properties, they will charge a fee for their services.

• Try negotiating fees, especially if you're extending your lease or subletting.

• If the realty company you’re working with is charging many fees, explore other realtors. Not all realtors have the same fee structure.

• Subletting may affect the amount of fees you’re asked to pay.