{"id":184578,"date":"2025-09-04T12:44:16","date_gmt":"2025-09-04T18:44:16","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=184578"},"modified":"2025-09-04T12:48:44","modified_gmt":"2025-09-04T18:48:44","slug":"massachustts-passes-new-law-forcing-more-transparency-from-landlords","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/massachustts-passes-new-law-forcing-more-transparency-from-landlords","title":{"rendered":"A New Law Forces Landlords to Change Practices in Massachusetts. While Other States Join, Here&#8217;s How to Stay Compliant"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Massachusetts is the latest state to enforce &#8220;junk fee&#8221; regulations. For landlords here, both large and small, this has significant implications. It means that the additional charges landlords and management companies tag on above the base rent, such as the cost of parking, amenities, trash pickup, pest control, and extra utilities, must be fully disclosed upfront as the overall cost before they ask a tenant to commit.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">&#8220;We&#8217;ve all been there: booked a hotel room, purchased concert tickets, or paid for a service that was advertised at one price and then charged for one exponentially higher\u2014all because of hidden junk fees,&#8221; Massachusetts Attorney General Andrea Joy Campbell said in a<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.mass.gov\/news\/ag-campbell-releases-junk-fee-regulations-to-help-consumers-avoid-unnecessary-costs\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> statement<\/span><\/a><span data-preserver-spaces=\"true\">. &#8220;These regulations seek to keep more money in residents&#8217; pockets by combating these unnecessary fees and ensuring consumers understand exactly how much and what they are paying for.&#8221;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to the new law, which falls under the<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.mass.gov\/info-details\/the-massachusetts-consumer-protection-law\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Massachusetts Consumer Protection Law<\/span><\/a><span data-preserver-spaces=\"true\">, landlords must explain why they are adding additional fees above the rental price, and tenants have the right to know whether any of the charges are optional.&nbsp;<\/span><\/p>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/gbreb.informz.net\/GBREB\/data\/images\/GBREB%20AGO%20Junk%20Fee%20Member%20Advisory%20August%202025.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Greater Boston Real Estate Board<\/span><\/a><span data-preserver-spaces=\"true\"> has suggested a straightforward solution for landlords: bundling all additional fees into the overall rental price, thereby eliminating the need for any further disclosures.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A National Push Against Junk Fees<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The housing crisis and the high cost of living have put rental expenses in the national spotlight, with several states seeking complete transparency. These include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Colorado:<\/span><\/strong><span data-preserver-spaces=\"true\"> &#8220;Unexpected, undisclosed fees cost consumers hundreds of dollars every month,&#8221; Democratic Sen. Lisa Cutter, one of the sponsors of a bill to address junk fees, said in a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cohousedems.com\/news\/signed!-new-law-cracks-down-on-%E2%80%98junk-fees%E2%80%99-to-save-coloradans-money\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">statement<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Minnesota: <\/span><\/strong><span data-preserver-spaces=\"true\">In May, Governor Tim Walz signed a bill establishing the failure to disclose mandatory fees in any transaction as<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.revisor.mn.gov\/bills\/text.php?number=HF3438&amp;type=bill&amp;version=3&amp;session=ls93&amp;session_year=2024&amp;session_number=0\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> a deceptive trade practice<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Maine: <\/span><\/strong><span data-preserver-spaces=\"true\">Maine&#8217;s law<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/wgme.com\/news\/local\/new-law-curbs-hidden-fees-for-renters-offering-transparency-in-rental-agreements\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> extends to mobile home parks<\/span><\/a><span data-preserver-spaces=\"true\">, where landlords must now supply a 45-to-75-day notice for rent increases of 10% or more, and a 75-day notice for increases exceeding 10%. It also prohibits rental application fees and move-out fees.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Connecticut: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/ctmirror.org\/2025\/06\/23\/ct-new-consumer-protections-laws\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Connecticut&#8217;s new rule<\/span><\/a><span data-preserver-spaces=\"true\"> covers junk fees for tenants, in addition to numerous other safeguards for people purchasing goods and services.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Other states imposing <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/nlihc.org\/resource\/states-introduce-multiple-tenant-protections-bills-legislative-session-securing-several\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">some form of legislation<\/span><\/a><span data-preserver-spaces=\"true\"> regarding junk fees include Georgia, Illinois, Minnesota, Virginia, Washington, and Rhode Island. <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.knkx.org\/government\/2025-07-12\/bellingham-passes-new-junk-fees-laws-housing-renters-manufactured-home-parks\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Several cities<\/span><\/a><span data-preserver-spaces=\"true\"> have also introduced their own versions of the law.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bigger Picture<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The clampdown on junk fees echoes a broader goal of reducing high rent prices, a move orchestrated by the Biden administration. In July 2023, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/bidenwhitehouse.archives.gov\/briefing-room\/statements-releases\/2023\/07\/19\/fact-sheet-biden-harris-administration-takes-on-junk-fees-in-rental-housing-to-lower-costs-for-renters\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the Biden White House<\/span><\/a><span data-preserver-spaces=\"true\"> announced an initiative to combat rental junk fees and received commitments from rental housing platforms, including Zillow, Apartments.com, and AffordableHousing.com, to display all-inclusive rental costs, including application fees and deposits, as part of their listings.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> coincided with the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/realpage-being-investigated-by-the-doj-puts-landlords-on-alert\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Department of Justice&#8217;s lawsuit<\/span><\/a><span data-preserver-spaces=\"true\"> against algorithmic rental management software company RealPage, which it accused of unlawfully conspiring to increase rental prices with its client base. During the Biden administration,<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/bidenwhitehouse.archives.gov\/briefing-room\/statements-releases\/2023\/07\/19\/fact-sheet-biden-harris-administration-takes-on-junk-fees-in-rental-housing-to-lower-costs-for-renters\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> HUD also released research<\/span><\/a><span data-preserver-spaces=\"true\"> and encouraged state-level reforms, such as fee caps and one-time application models, to promote rent clarity and support fairer rental markets.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How the New Laws Could Affect Landlords<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The new rental &#8220;junk fee&#8221; laws <\/span><span data-preserver-spaces=\"true\">are unquestionably aimed<\/span><span data-preserver-spaces=\"true\"> at larger, corporate landlords such as <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-are-reits\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">REITs<\/span><\/a><span data-preserver-spaces=\"true\">, who routinely include ancillary fees to increase revenue, which in turn boosts their stock price.<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.businessinsider.com\/junk-fees-rental-apartment-housing-costs-history-2025-5?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Business Insider<\/span><\/a><\/em><span data-preserver-spaces=\"true\"> reports that since the 1990s, major REITs such as Equity Residential, Camden Trust, Avalon Bay, and Invitation Homes have separated services like pest control and waste management that <\/span><span data-preserver-spaces=\"true\">were previously included<\/span><span data-preserver-spaces=\"true\"> in the overall rent.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Small &#8220;mom-and-pop&#8221; landlords, who own three to 10 rental properties, make up the<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cotality.com\/insights\/articles\/mom-and-pop-investors-shape-housing-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> majority of U.S. residential property owners<\/span><\/a><span data-preserver-spaces=\"true\">. Generally, they do not add on junk fees to the same extent as institutional investors and are more open to negotiation from tenants.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">&#8220;Owner-managed properties are easier to negotiate,&#8221; John Kilpatrick, managing director of Greenfield Advisors in Seattle, told<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/realestate.usnews.com\/real-estate\/articles\/can-you-negotiate-rent\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">U.S. News &amp; World Report<\/span><\/a><\/em><span data-preserver-spaces=\"true\">. &#8220;If you&#8217;re trying to rent from a property manager or a large REIT, you&#8217;re probably out of luck.&#8221;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/resident.com\/resource-guide\/2025\/08\/06\/mom-and-pop-landlords-in-2025-whats-happening-why-it-matters\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> mom-and-pop landlords<\/span><\/a><span data-preserver-spaces=\"true\"> also have &#8220;off-lease&#8221; arrangements with their tenants, such as grass cutting, snow removal, and garbage disposal, for an agreed-upon rent reduction. <\/span><span data-preserver-spaces=\"true\">From now on, officially <\/span><span data-preserver-spaces=\"true\">including<\/span><span data-preserver-spaces=\"true\"> these agreements in a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-to-include-in-a-lease-agreement\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">lease agreement<\/span><\/a> <span data-preserver-spaces=\"true\">is a good idea as<\/span><span data-preserver-spaces=\"true\"> oversight <\/span><span data-preserver-spaces=\"true\">increases<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Change of Administration, a Change of Heart<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The Trump administration&#8217;s &#8220;Big Beautiful Bill&#8221; has chosen to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.newsweek.com\/trump-admin-update-section-8-housing-what-know-2122524\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">limit the time period<\/span><\/a><span data-preserver-spaces=\"true\"> tenants can receive Section 8 vouchers to two years.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Corporate landlords are the winners of the new legislation. It remains to <\/span><span data-preserver-spaces=\"true\">be seen<\/span><span data-preserver-spaces=\"true\"> whether the government will also choose to help landlords increase revenue by blocking anti-junk fee laws.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What Landlords Should Do to Comply With Junk Fee Laws<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If a landlord fears they might face an investigation over additional fee charges, there are some concrete steps they can take:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Audit your fees:<\/span><\/strong><span data-preserver-spaces=\"true\"> List all charges, including application costs, admin, and services, and determine which are mandatory or optional. Provide this upfront to tenants, and keep a record.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Update advertising and leases:<\/span><\/strong><span data-preserver-spaces=\"true\"> Ensure the total cost of rent is clearly displayed upfront in all listings. Include an itemized fee breakdown, with opt-out instructions for optional charges.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Improve cancellation and renewal transparency<\/span><span data-preserver-spaces=\"true\">:<\/span><\/strong> <span data-preserver-spaces=\"true\">Make<\/span><span data-preserver-spaces=\"true\"> opt-out cancellation straightforward<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">clarifying timing for auto-renewal services.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Monitor developments in your local state\/locality:<\/span><\/strong><span data-preserver-spaces=\"true\"> Don&#8217;t be caught unaware by new legislation. Stay informed by connecting with landlord associations or consulting with legal advisors.<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Transparency is the key. If all fees <\/span><span data-preserver-spaces=\"true\">are clearly outlined<\/span><span data-preserver-spaces=\"true\"> in writing, there is no cause for complaint. Alternatively, including fees within the overall rent and clearly stating what <\/span><span data-preserver-spaces=\"true\">is included<\/span><span data-preserver-spaces=\"true\"> in the rent should be acceptable to everyone as well.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While blindsiding tenants with additional fees they were not aware of is never a good look for landlords, property owners are often portrayed as the bad guys, when it\u2019s increased taxes, insurance, and maintenance, as well as municipalities&#8217; code compliance, that make it difficult for many landlords to make a living.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There is no easy solution. Landlords don&#8217;t have an obligation to provide housing to people who cannot afford it, and tenants are not obligated to rent from them.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It boils down to supply and demand. More housing supply would create more options for everyone.&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Massachusetts is the latest state to enforce &#8220;junk fee&#8221; regulations. For landlords here, both large and small, this has significant implications. It means that the additional charges landlords and management [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":184573,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7384],"tags":[],"class_list":["post-184578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics-policy"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=184578"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/184573"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=184578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=184578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=184578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}