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From Junk Fees to Secret Airbnbs: Massachusetts Takes on the Rental Market

Recently Massachusetts has taken action to protect tenants from hidden fees as well as to clarify how fees are paid to real estate agents assisting both tenants and landlords. Together, these reforms aim to make the rental process more transparent and fair. Local communities are also taking a closer look at how short-term rentals (STRs) work—and don’t—when many are not properly registered.

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New Laws Governing Rentals

As of August 1, 2025, new laws require broker fees be paid by the party hiring the agent. If a landlord engages an agent to market and lease a unit, the landlord must cover that fee. If a tenant hires an agent to help find an apartment, then the tenant pays. There are no exceptions to this rule; whether you are a landlord or a tenant, be clear on who the agent you are talking to represents.

 

In addition, as of September 2, 2025, Massachusetts enacted new laws to protect consumers and renters from "junk fees." Junk fees refer to charges that are not disclosed upfront. For example, a rental is listed at one monthly price, but the prospective tenant then realizes they will pay more due to amenity fees, pet fees, or administrative fees further into the process. The new law stipulates that the total cost must be disclosed at the first point of contact and before collecting personal information.

Key Aspects Affecting Rentals:

  • Full Price Disclosure: Landlords must clearly disclose the full rent, including all required fees, when they advertise. This information must be conspicuous, legible, and easily understood.

  • Optional Fees Defined: If a fee is optional or waivable, the landlord must disclose it, explain its nature and purpose, and provide clear instructions on how to avoid paying it.

  • Automatic Renewals: If a lease renews automatically unless the tenant opts out, the landlord must clearly disclose the renewal terms upfront and provide a simple cancellation mechanism. Renewal reminders must go out 5 to 30 days before the cancellation deadline.

  • Restrictions on Illegal Fees: The new regulations reinforce existing Massachusetts laws that already prohibit various types of charges. Prohibited fees include:

    • Application fees

    • Credit check fees

    • Holding deposits

    • Pet deposits or one-time pet fees (though ongoing "pet rent" might be permissible under certain circumstances)

    • Lease renewal fees

    • Security deposits exceeding one month's rent

    • Late fees charged less than 30 days after rent is due 

 

Unregistered Rentals

Many communities across the state also have issues with short-term rentals, often listed on Airbnb or VRBO, that do not comply with local ordinances. According to a recent article on Boston.com, many short-term rentals are not properly registered (Tracking the Underground Airbnb Network in Boston) and cause significant problems for other building residents and neighbors. These properties may also be in violation of code or lack safety features. Airbnb now requires listings in communities in which short-term rentals must be registered to list that registration number, but the article, and a follow-up article about Cambridge, found anonymous go-betweens and fraudulent registrations abound.

The Bottom Line

The state is working towards a more transparent housing market—whether for long-term leases or short stays. Laws regulating both share the goal of protecting consumers by offering transparency, fairness, and safety on all levels of housing. The next time you rent an apartment or book a short stay, the full cost should be disclosed upfront, fees should be clearly defined, and you should ensure that the property is properly registered.

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Liz & Ellie Local

(617) 444-9644

lizandellie@compass.com

1100 Massachusetts Ave
Cambridge, MA 02138

Liz & Ellie Local is a team of real estate agents affiliated with Compass. Compass Massachusets, LLC d/b/a Compass is a licensed real estate broker and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. 

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