New “Junk Fee” Regulations Took Effect Sept. 1, 2025
. Posted in News - 0 Comments
The new Massachusetts regulations against “junk fees” took effect on Sept. 1, 2025. Though much of it will not affect landlords, there are some provisions of 940 CMR 38 you should be aware of, especially if you use a self-extending (automatically renewing) lease.
Unless you are diligent about sending renewal reminders, we recommend you stop using a self-extending lease. (Image: cc BY-SA 4.0 MassLandlords, Inc.)
The new regulations state that anyone advertising anything (including rental housing) to a Massachusetts resident must “clearly and conspicuously” show the “total price” of the product at all stages of the sale, from advertisement to purchase. For landlords, this means the total monthly cost of the rent must be disclosed from first ad through lease signing, as well as the terms of the agreement (month-to-month, 12-month lease, 12-month automatically renewing lease, etc.).
It is lawful to list a range for the rent if different options are available, as long as the options are properly disclosed. Likewise, anything you and your tenants agree to mid-tenancy, such as additional pet rent or parking fees, is still lawful.
If you use a self-extending lease – that is, one that automatically renews for an entire lease term – 940 CMR 38 requires you to send a notice of automatic renewal between five and 30 days before the decision date. You can continue using a self-extending lease if you diligently send the required notice of automatic renewal. If you do not provide this notice of renewal, and your tenant does not say anything about the renewal, the new rental agreement will be unenforceable with respect to its new one-year term.
At that point, if your renter wants to terminate the lease and you do not agree, you would be running afoul of the law, and would be facing triple damages under Chapter 93A.
To avoid this, we recommend you stop using a self-extending lease and go with a fixed-term lease that automatically converts to a month-to-month lease if it is not renewed. If you have used a self-extending lease and forgot to send a renewal reminder, your best option is to let your renter out of it without penalty as soon as they ask.
Remember that, regardless of whether a renter agrees to an extension, payment for use and occupancy can be ordered by a court for the time they reside in a unit. In other words, no one gets to live rent-free just because you failed to notify them. You may, however, owe triple whatever their damages may be. It will be up to the court to decide. Best not to use a self-extending lease.
