As part of its budget for the 2026 fiscal year, the Massachusetts Legislature included a provision limiting broker fees for residential rental properties.

Under the new rule, broker fees for rentals become the responsibility of the party who hired the broker. This means brokers may only charge a fee to the landlord or tenant they contracted with originally.

If Gov. Maura Healey signs the budget by the July 10 deadline, the new broker fee law will take effect on Aug. 1.

Shortly after the provision was announced, Real estate giant Zillow released a letter of support addressed to Healey.

In the letter, Lorraine Collins, Zillow Group’s government relations and public affairs manager for the Northeast region, expressed concern on Zillow’s behalf for the high upfront costs faced by renters in Boston.

According to Zillow’s research, Boston renters pay the highest upfront costs in the nation at nearly $13,000 on average — nearly 14% of the median annual income in the area.

“Broker fee reform is an immediate and necessary step to reduce financial barriers and provide meaningful relief to renters,” Collins said in the letter. “This reform will decrease upfront costs for renters, making it easier and more affordable for people to access new housing opportunities; increase renter mobility, which can help unlock more homes on the market and give renters greater leverage in lease negotiations; and ensure that agents are compensated by the party who actually engages their services, creating a fairer and more transparent system.”