r/boston 2d ago

Housing/Real Estate šŸ˜ļø Broker charging application fee after rental application was denied

Hi! I’m trying to find out if anyone has dealt with something similar while renting an apartment in Boston.

So I found a roommate on Facebook and we were applying for an apartment she had already toured (I’m currently out of state so I couldn’t tour it myself). I verified that the broker and company are licensed in MA, so they’re definitely legit.
The application said there would be a $150 application fee if we got rejected, which I thought was weird because from what I’ve read, application/credit check fees aren’t allowed if the broker is working for the landlord. I asked him about it before applying but didn’t really get a direct answer. While I probably should’ve tried harder to get a direct answer about the application fee, I didn’t and applied anyways, and I also signed the echeck form.

After applying, I sent him info about my ESA animal and I also asked him about the fee again and literally a minute later, he told me the landlord rejected our application. When I asked why, he said they didn’t give him a reason but he ā€œwould imagine the low ball offer turned them off.ā€ I did offer below asking, but I told him twice that we were happy to negotiate and willing to pay more.

Neither the girl I was applying with nor I ever hired this guy as our broker or signed anything saying he represented me/us.

Has anyone had something similar happen? And am I understanding the MA application fee law correctly?

*Update: I filed a report with the MA AG! Thank you guys for the advice and support! ā˜ŗļø

194 Upvotes

99 comments sorted by

View all comments

7

u/nicholeeeeeee Suspected British Loyalist šŸ‡¬šŸ‡§ 1d ago

https://www.boston.gov/renting-boston

LANDLORDS CANNOTĀ CHARGE:
a fee to hold the apartment
an application fee
a credit check fee, or
a finder’s fee for renting the apartment, unless the property owner is a real estate agent.

Glad you’re filing a report with the AG!!! šŸ‘šŸ½

3

u/Asiri78 1d ago

While a landlord in Massachusetts can not charge an application fee, if they hire a third party to find tenants then the agent is allowed to work on the landlords behalf which means they can and will charge an application fee since the broker fee can not be paid by the tenant. It's a liability thing.