9 Things All Massachusetts Landlords And Tenants Should Know

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In all rental agreements in Massachusetts, certain rights, remedies, and responsibilities apply to landlords and tenants. The Massachusetts landlord-tenant law statutes are detailed under Massachusetts General Laws (“M.G.L.”) chapter 186. Further rules governing the area in which a tenant lives depend on ordinances passed by their city or town. Ordinances generally relate to health, safety, right of enjoyment, and antidiscrimination rules. There are also several federal laws that should be considered. The following list outlines 9 things every Massachusetts landlord and tenant ought to know.

1. 1. Up-Front Fees

What up-front fees can a landlord charge to a tenant? According to the Massachusetts Security Deposit Statute, M.G.L. c. 186 §15(B), residential landlords are only allowed to charge one of the following four types of fees to prospective tenants: (1) first month’s rent, (2) last month’s rent, (3) a security deposit equal to or less than the first month’s rent; or (4) a key-and-lock purchase and installation. In a recent Massachusetts case, Perry v. Equity Residential Mgmt, the court held with exception to monthly pet fees, application fees, amenity or move-in fees, community fees, and up-front pet fees are all unlawful.[1]

1. 2. Security Deposits

Can a landlord charge a tenant a security deposit? Yes, landlords can charge and collect a security deposit from their tenants, but those funds must be held in a separate, interest-bearing account in a Massachusetts bank.[2] A security deposit is defined as a “deposit of money to the landlord to ensure that rent will be paid and other responsibilities of the agreement will be performed.”[3] While the funds are held, tenants are entitled to receive 5% interest or whatever lesser amount is received from the bank where the security deposit was deposited.[4] To comply with the law, the landlord must provide a receipt to their tenants within 30 days identifying the bank’s name, address, account number, and deposit amount.[5]

1. 3. Late Fees

Can a landlord charge a tenant with a late fee or interest on late payments? Yes, under certain circumstances, a late fee or interest charge can be charged. Landlords are allowed to charge their tenants late fees or interest. However, the caveat is that landlords can only charge a late fee or interest if it is a term that the tenant agreed upon when the tenancy commenced.[6] In the absence of such a term, the landlord is not allowed to collect a late payment or interest from the tenant.[7] The Massachusetts statute also forbids landlords from imposing a penalty or interest until 30 days after the rent is due. Rental agreements that apply a penalty or interest before 30 days do not conform to the law.[8] Therefore, they are considered unfair and deceptive in violation of the Massachusetts Consumer Protection Statute.[9]

1. 4. Early Rent Payments

Can a landlord require a tenant to pre-pay rent? No, it is unlawful for a landlord to require a tenant to pre-pay rent. Under Massachusetts law, a landlord is allowed to collect the first and last month’s rent at or before the commencement of any tenancy; however, this is the ceiling for what they can demand. In exchange, the landlord must give the tenant a receipt of such prepaid rent.[10] State law also requires a landlord to pay its tenant interest on any prepaid rent at a rate of 5% per year, or other such lesser amount of interest as has been received from the bank where the deposit has been held payable in accordance with the provisions of this clause, and a statement indicating that the tenant should provide the lessor with a forwarding address at the termination of the tenancy indicating where such interest may be given or sent.[11]

1. 5. Raising Rent

Is a landlord allowed to increase the amount of rent charged to a tenant? Yes, under certain situations, a landlord can change the amount of rent charged to an existing tenant. A landlord has the ability to adjust the rental rate to any amount he or she sees fit; however, this can only occur after an existing lease agreement expires.[12] The exception to this rule applies to tenancy-at-will arrangements, where no written lease agreement exists.[13] The landlord is required to provide a tenant-at-will with notice of the intent to increase rent at least 30 days or one full rental period before the proposed termination date, whichever period is longer.[14]

1. 6. Insurance

Can a landlord require a tenant to obtain a rental insurance policy? Yes, currently, a landlord may require a tenant to carry Massachusetts renters insurance, as a condition in the lease agreement.[15] However, after the court’s recent decision in Hermida v. Archstone, future courts may view these fees as a type of “up-front” fee in violation of the state’s Security Deposit Statute.[16] Generally, a landlord’s insurance will only insure the physical structure. Under Massachusetts law, every “policy which insures multi-unit residential property against loss or damage by fire shall provide additional benefits, by endorsement attached to the policy, up to a limit of seven hundred and fifty dollars, without deductible, for each rental unit to cover the actual costs of relocation of any tenant or lawful occupant displaced by fire or by damage resulting from fire.”[17] Personal property of the tenant is their responsibility to protect, not the landlord’s.

1. 7. Standards of Fitness for Habitation

What are the standards of fitness for habitation that apply to rental units? State agencies issue regulations that are compiled in the Code of Massachusetts Regulations (“CMR”). The State Sanitary Code is defined under Chapter II of 105 CMR 410, which includes the minimum standards of fitness for habitation that rental units must adhere to.[18] The main goal of the code is to “protect the health, safety and well-being of the occupants of housing and of the general public, to facilitate the use of legal remedies available to occupants of substandard housing, to assist boards of health in their enforcement of this code and to provide a method of notifying interested parties of violations of conditions which require immediate attention.”[19]

1. 8. Eviction

How does the eviction process work in Massachusetts? State law allows a landlord to evict a tenant for a number of reasons, but the landlord must follow specific procedures. A landlord must properly terminate the tenancy, and then obtain permission from the court to take possession of the rented property.[20] If a valid lease agreement is in place, then a tenant can be evicted for any of the following: violating the lease terms (if the lease agreement states the landlord can evict for that type of breach); failure to pay rent; or violations of (state or federal) law. [21]. If no lease agreement is in place and the tenant is there “at-will,” a landlord can evict the tenant without stating a reason. The caveat, though, is that the landlord must serve a notice to quit to terminate the tenancy (unless the termination is for illegal activities conducted by the tenant).[22] The first day a rental payment is late a landlord can initiate the eviction process. Termination for non-payment of rent requires the landlord to send a 14-Day Notice to Quit.[23]. A landlord may give a tenant at will, who has received a second notice to pay rent or quit within 12 months, an unconditional quit notice that gives the tenant 14 days to move out before the landlord can file for eviction.[24] For a tenant to cure this issue and avoid eviction, he or she must pay the rent due within 10 days of receiving the Notice to Quit.[25] If the termination occurs for any other form of breach, then the tenant must be served with written notice within the longer of (1) 30 days in advance of termination, or (2) one full rental period.[26]

1. 9. Discrimination

Do tenants have rights against unlawful discrimination? Yes, state law forbids landlords from discriminating on the basis of specified protected categories.[27] The Massachusetts Fair Housing Law was passed in 1946, twenty years before the federal Fair Housing Act was enacted, to combat discrimination in housing.[28] The current law, M.G.L. c. 151B § 4, states for “any person to make, print, or publish, or cause to be made, printed, or published any notice, statement or advertisement, with respect to the sale or rental of multiple dwelling, contiguously located, publicly assisted or other covered housing accommodations that indicates any preference, limitation, or discrimination based on race, color, religion, sex, sexual orientation…, national origin, genetic information, ancestry, children, marital status, public assistance recipiency, or handicap or an intention to make any such preference, limitation or discrimination except where otherwise legally permitted.”[29] Discrimination is an issue that still frequently arises in housing matters. Jordan Graham, a writer for the Boston Herald, reported, “in fiscal year 2014, HUD and HUD-funded agencies reported handling 200 new cases of housing discrimination in Massachusetts, and closed another 297 cases. Nearly half of the new cases were disability-related, while close to a quarter were racial discrimination.”[30]

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Citations

1. 1. Perry v. Equity Residential Mgmt., 1:12-cv-10779-RWZ (D. Mass. Aug. 26, 2014).
2. 2. M.G.L c. 186 § 15(B)(2)(a).
3. 3. http://www.mass.gov/ocabr/docs/tenantsrights.pdf
4. 4. Id.
5. 5. Id.
6. 6. M.G.L c.186 § 15B(1)(c).
7. 7. http://www.avvo.com/legal-guides/ugc/late-fees-and-interest-for-late-rent-payments
8. 8. Id.
9. 9. M.G.L. c. 186, s. 15B.
10. 10. M.G.L c. 186 § 15(B)(1)(b)(i-ii).
11. 11. M.G.L. c.186 § 15B(2)(a).
12. 12. Maureen E. McDonagh and Julia E. Devanthéry, Receiving Proper Notice, May 2014.
13. 13. Id.
14. 14. Id.
15. 15. Rich Vestein, Esq., Can Massachusetts Landlords Legally Require That Tenants Buy Renter’s Insurance?, March 12, 2012.
16. 16. Id.
17. 17. M.G.L. c. 175 s.99.
18. 18. http://www.mass.gov/courts/case-legal-res/law-lib/laws-by-source/cmr/100-199cmr/105cmr.html
19. 19. Id.
20. 20. http://www.masslegalhelp.org/housing/legal-tactics1/chapter13-evictions.pdf
21. 21. Id.
22. 22. M.G.L. c. 139, §19.
23. 23. M.G.L. c. 186, §11 and §12.
24. 24. http://www.nolo.com/legal-encyclopedia/overview-landlord-tenant-laws-massachusetts.html
25. 25. http://www.mass.gov/ocabr/docs/tenantsrights.pdf
26. 26. Id.
27. 27. M.G.L. c. 151B, § 4.
28. 28. http://www.bostonfairhousing.org/timeline/1946-Chapter-151b.html
29. 29. M.G.L. c. 151B s.4.
30. 30. Jordan Graham, Boston Herald, “Suffolk Law School behind anti-discrimination effort”, March 14, 2015.