Salem councilor aims to eliminate broker fees

A city councilor in Salem, Massachusetts, is pushing to end broker fees for renters. Councilor Kyle Davis plans to introduce a new proposal at the upcoming Salem City Council meeting. He believes that eliminating these fees could help renters who struggle with high housing costs. Broker fees are often required when renting an apartment. They are paid on top of the first and last month's rent. In Salem, the average rent for a two-bedroom apartment is about $2,700. Davis said that requiring four months' rent upfront can mean nearly $11,000, which is a significant burden for many renters. Davis wants to join other cities like Boston and Cambridge in this effort. He argues that reducing broker fees could lower the costs for renters. However, the Massachusetts Association of Realtors warns that eliminating these fees could lead to higher rents. They believe landlords may avoid using licensed brokers, which could hurt fair housing practices. Governor Maura Healey supports ending broker fees and intends to include it in the next state budget. Davis emphasized the importance of having a backup plan to ensure the proposal moves forward if necessary. He is optimistic that the city council will back his initiative.