Massachusetts Landlords--Late Fee question--Conflict with BP form

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Massachusetts Landlords--Late Fee question--Conflict with BP form

Fausto CarosellaPro Member
Real Estate Broker · Boca Raton, FL · Member since 2014 · 98 posts · 23 votes

Hey all,

Purchased Mass Landlord forms right here from BP... trying to help a buddy out who bought his first home that has an in-law apartment. The lease I purchased states: 

"Any payments paid after the _____ day of any calendar month shall be deemed late. Any late payments shall be charged a $______ late fee for the first day rent is late. An additional fee of $_______ per day shall be assessed for each additional day Rent is late, until Rent is paid in full."

Everything I've found says you cannot charge a late fee until after 30 days. Can anyone shed some light on this? These are supposed to be written by attorneys....

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John Strobel
Rental Property Investor · Newburyport, MA · Member since 2016 · 7 posts · 4 votes
8y

You are correct, @Fausto Carosella -- in MA you cannot charge late fees until it's 30 days late. I recently dug into this as I was redoing my lease. Here's an excerpt from www.mass.gov's "Tenant's Rights Guide":

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  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    8y

    @Mindy Jensen Are you able to assist?

    I agree it definitely needs to reflect the local laws properly, and sometimes a county's laws can differ from the overall state laws. Also, I personally do not like late fees that accrue daily. That is just more book-keeping for you. I like just one flat (and legal) late fee assessed on the first day legally allowed. 30 days late does seem a long time, but I guess Mass. is kinda a crazy place. ;-)

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  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    8y

    @Fausto Carosella , thanks for bringing this to my attention. I will check with the MA attorney about this and let you know. 

    [email protected]Podcast Guest on Show #261
    BiggerPockets
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  • Fausto CarosellaPro Member
    OP
    Real Estate Broker · Boca Raton, FL · Member since 2014 · 98 posts · 23 votes
    8y

    @Nicole A. Right! 30 days late... almost negates the whole purpose...... @Mindy Jensen I just went through the entire Mass Lease and under the Miscellaneous clause 24(P) it states 

    "as required under Rhode Island Law"


    is it possible the "packets" for the states got mixed up?

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  • John Strobel
    Rental Property Investor · Newburyport, MA · Member since 2016 · 7 posts · 4 votes
    8y

    You are correct, @Fausto Carosella -- in MA you cannot charge late fees until it's 30 days late. I recently dug into this as I was redoing my lease. Here's an excerpt from www.mass.gov's "Tenant's Rights Guide":

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  • Fausto CarosellaPro Member
    OP
    Real Estate Broker · Boca Raton, FL · Member since 2014 · 98 posts · 23 votes
    8y

    Thanks @John Strobel. Would you mind sharing your Security Deposit/Last months rent clause and Late payment clause... since I'm pretty sure these are incorrect? 

    Any chance you've heard back from the MA attorney @Mindy Jensen?

    Thanks again guys!

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  • John Strobel
    Rental Property Investor · Newburyport, MA · Member since 2016 · 7 posts · 4 votes
    8y

    I basically took the late fee clause out since 30 days late is ridiculous and I would probably have started the eviction process by then anyway (I'm a pretty new landlord and haven't yet had to deal with that so fingers crossed). Here's what I use:

    First month’s rent of $                   and Security Deposit of $ __            if applicable, will be collected before the start of the term and will be held by the Landlord and maintained in accordance with Massachusetts General Laws. A receipt for each deposit is provided as part of this agreement.

    NEXT PAYMENT: The next payment is due on ___                  ___ in the amount of $___             

    c.DUE DATE: Rent (including, without limitation, any pet fees or other fees) shall be due on or before the 1st day of each month in advance, without notice or demand, and without deduction or offset. Monthly rent payments must be RECEIVED no later than the end of the “grace period” which is the 5th day of the month. (Weekends or holidays occurring within those days shall not be added to the grace period.) Payment must be RECEIVED no later than 5:00 on the last day of the grace period. Bad health, reduced hours at work, the loss of job, financial emergency or other circumstances will not excuse any late rent payments.

    d.EVICTION NOTICE: Should the Tenant fail to pay rent by the due date, Landlord may serve an eviction notice, as required by applicable laws.

    Tenants agree that they are renting the premises together and yet each will be responsible for the full amount of rent regardless of whether any other Tenant within the household should fail to contribute their fair share.

    SECURITY DEPOSIT: Contemporaneously with the execution of this Lease, Tenant shall deposit with Landlord a security deposit in the amount of $__          ___ as security for the return of the Premises at the expiration of the term of this Lease in as good condition as when Tenant took possession of the Premises, normal wear and tear excepted, as well as the faithful, timely and complete performance of all other terms, conditions and covenants of the Lease. Provided that Tenant has paid all amounts due and has otherwise performed all obligations hereunder, the security deposit will be returned to Tenant with interest within thirty (30) days after the expiration of the term of this Lease, further provided that Landlord may deduct from the Security Deposit prior to returning it any amounts owed by Tenant to Landlord.  

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  • Matt P.
    Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
    8y
    Did i read this right, you purchased a form marketed by bigger pockets for Mass and it was actually a RI form? lol if so thats not a good look.
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  • Fausto CarosellaPro Member
    OP
    Real Estate Broker · Boca Raton, FL · Member since 2014 · 98 posts · 23 votes
    8y

    Awesome.... Thanks @John Strobel. Appreciate it!

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  • Fausto CarosellaPro Member
    OP
    Real Estate Broker · Boca Raton, FL · Member since 2014 · 98 posts · 23 votes
    8y

    @Matt P. I believe there's some errors in there, yes. Always gotta cross your T's and dot your i's !

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  • Mike HurneyPro Member
    Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 545 votes
    8y

    @John Strobel You may want to check with an Attorney, I don't believe you can charge a pet fee in Mass.

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  • John Strobel
    Rental Property Investor · Newburyport, MA · Member since 2016 · 7 posts · 4 votes
    8y

    I was iffy on the pet fee as well. However, I looked around at apartment complexes in my area and they all charge pet fees and explicitly say so on their websites. 

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  • Brandon Ingegneri
    Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes
    8y
    You do not want to use a generic form. It’s a great baseline, but you want to create all of your own documents. Some may need to be specific to specific houses depending on situation. Get an attorney, spend a few bucks, and tie up loose ends. BP is great, but there can never be a complete 1 stop shop. Doing ground work is part of the business.
    1Reply
  • Douglas Snook
    Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
    8y

    @John Strobel you can not charge specific "pet fee" in MA. The websites may be for a notional company but when you go to lease, the actual lease may be different as it should be specific for MA.

    I would not take the chance as the penalty would probably be triple damages to the tenant if you were ever challenged in a court case. Are your pockets deep enough to afford that?

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