RE99R25: Residential Rental - Landlord/Tenant Issues - Part 2 Revised CE Course

This course builds upon Part 1 of the Residential Rental series and focuses on legal responsibilities, best practices, and risk management for real estate licensees representing landlords in Massachusetts.

Instructor: It is the responsibility of the instructor to be sure all information is up to date and current.

Course Description:  This course builds upon Part 1 of the Residential Rental series and focuses on legal responsibilities, best practices, and risk management for real estate licensees representing landlords in Massachusetts. The course offers detailed guidance on lease agreements, deposits, tenant terminations, and common legal violations. Emphasis is placed on state laws, consumer protection, and landlord obligations in ensuring safe, fair, and compliant rental practices.

I. Lease Agreements

Objective: Equip licensees with the knowledge of lease agreements, distinguish valid contract elements, and ensure compliance with legal requirements.

A. Written vs. oral leases

1. Legal validity and enforceability
2. Provisions that attempt to exempt landlords from compliance with legal obligations, such as building codes or safety regulations. Benefits and risks of oral agreements
   1. Offer and acceptance
   2. Consideration
   3. Legal capacity of parties
   4. Lawful purpose
   5. Estate for years vs. tenancy at will
   6. Statute of Frauds for leases over 1 or
   7. Acknowledgement and recordation for leases 7 or more years
   8. 99 year leases  (commercial)
   9. Right of quiet enjoyment
   10. Utility and water metering disclosures (M.G.L. c. 186, § 22)
   11. Escalation clauses and late payment fees
   12. Responsibility for services and repairs
   13. Utilities
   14. Who may enter and for what reasons
   15. Limitations
   16. Purpose
   17. No statutory 24-hour rule, but "reasonable notice" required (M.G.L. c. 186, §15B)

B. Requirements of a valid lease contract

C. Term lengths

D. Key lease provisions

E. Landlord access rights

F. Rent withholding and repair-and-deduct rights

1. Legal basis and documentation
   1. Any lease clause that requires the tenant to waive legal rights or remedies provided under state law.
   2. Provisions that attempt to exempt landlords from compliance with legal obligations, such as building codes or safety regulations.
   3. Lease provisions that limit occupancy based on the presence of children or familial status, in violation of fair housing laws.
   4. Clauses that hold the landlord harmless for liability resulting from their own negligence or legal noncompliance.
   5. Requirements mandating routine landlord access without reasonable notice, beyond what is allowed under law.
   6. Provisions that attempt to waive the landlord’s duty to maintain habitable premises or to provide basic services such as heat, water, or electricity.
   7. Language that allows landlords to transfer responsibility for utilities without the tenant’s consent.

a. Tenants in Massachusetts may legally withhold rent or use the repair-and-deduct remedy when conditions in the rental unit violate the State Sanitary Code or materially affect health and safety (e.g., no heat, serious leaks, pest infestation).

b. Rent withholding is permitted only if the landlord has been notified of the problem and given a reasonable opportunity to fix it.

c. Repair-and-deduct is allowed if the tenant pays for necessary repairs out of pocket and deducts the cost from rent, provided proper notice and receipts are submitted to the landlord.

d. Tenants should maintain written records of all communication with the landlord, including requests for repairs, time-stamped photos of conditions, receipts, and dates of withholding or deductions.

e. Landlords must understand these rights and respond appropriately, as improper retaliation can expose them to legal liability or claims under M.G.L. c. 93A.

G. Prohibited lease provisions

H. Retaliatory actions by landlord (M.G.L. c. 186, §18)

• Under M.G.L. c. 186, §18, a landlord is prohibited from retaliating against a tenant for engaging in legally protected activities such as reporting health or building code violations, joining a tenants' union, or filing a legal claim.
• Retaliatory acts may include increasing rent, decreasing services, initiating eviction, or refusing to renew a lease.
• The law presumes retaliation if adverse action occurs within six months of a tenant's protected activity, shifting the burden to the landlord to prove a non-retaliatory motive.
• Documentation is critical: tenants should keep records of complaints or notices sent, and landlords should keep records demonstrating legitimate, non-retaliatory reasons for their actions.
• Violations may entitle tenants to damages, injunctive relief, and attorney fees under M.G.L. c. 93A.
  • First month's rent
  • Last month's rent
  • Security deposit
  • Key/lock deposit
  • Cleaning fees, pet deposits, upfront fees beyond legal limits, hold fees, move-in and move-out fees
  • Upon sale of property or end of tenancy
  1. The security deposit remains the legal property of the tenant.
  2. Must be held in a separate, interest-bearing bank account in a bank located in Massachusetts.
  3. A written receipt is required when accepting a security deposit. a. The receipt must include the date received, amount, name of receiving party, and description of premises.
  4. Within 30 days of receiving the deposit, the landlord must provide the tenant with:
     • a. The name and address of the bank,
     • b. Account number,
     • c. Amount of deposit.
  5. A written statement of condition must be provided within 10 days of tenancy.
  6. Landlord must maintain an accurate record of deposit activity and make it available upon request.
  7. Interest must be paid annually or at the end of tenancy, whichever comes first. a. Interest must be at the rate of the bank account or 5%, whichever is lower.
  8. Security deposits may only be applied to:
  9. Improper handling or failure to comply carries strict liability and may result in forfeiture of the deposit by the landlord and demand for 3 times the deposit, court and attorney fees.
  10. A written receipt is required at the time of collection.
      • a. The receipt must include the amount received, date, purpose, and name of the person receiving the payment.
  11. Landlord must pay interest annually or at the end of the tenancy, whichever comes first.
      • a. Interest must be paid at the rate of the bank account where the rent is held or 5%, whichever is less.
      • b. Interest must be paid directly to the tenant or applied to rent owed.
  12. Recordkeeping and interest payment documentation must be available to tenants upon request.
  13. Noncompliance may result in financial penalties under state law.
  • End of fixed term, agreement to vacate, estate at sufferance
  • 30-day or rental period notice
  • 14-day notice for nonpayment
  • 7-day notice for violations or other causes
  • Retaliatory actions, self-help evictions
  • Legal filings and timelines
  • Court orders required for eviction
  • Inventory, storage, notice requirements
  1. Tenants may petition to seal certain eviction records based on the type and outcome of the case:
     • 1.1. Immediately: No-fault or dismissed evictions                          
     • 1.2. After 4 years: Non-payment evictions with no further filings
     • 1.3. After 7 years: For-cause evictions without recurrence
  2. Landlords may file an objection within 7 days if notified
  3. Licensees must advise landlord clients of screening implications and update forms to avoid requesting sealed information
  4. Eviction sealing petitions and records are protected from public access
  5. Violations or misuse may lead to consumer protection claims
  6. Railings
  7. Lighting
  8. CO/smoke detectors
  9. Snow removal
  10. Tenant-initiated emergency repairs
  11. Reimbursement timing and documentation
  12. Sanitary code violations
  13. Municipal enforcement actions
  14. Payments not permitted by lease or statute
  15. Examples of prohibited fees
  16. Legal language vs. plain language
  17. Risks of misinterpretation
  18. Lockouts and utility shutoffs
  19. Legal remedies for tenants
  20. Interest timeline compliance
  21. Legal interest rates and calculations
  22. Written lease requirement
  23. Transparency in fee structures
  24. Harassment or interference
  25. Examples of breach
  • Misrepresentation, deceptive lease terms, failure to follow laws

II. Deposits and Fees

Objective: Enable licensees to manage all financial transactions related to deposits and rent payments in accordance with state laws, including documentation, interest, and refund obligations.

A. Maximum legal deposits (M.G.L. c. 186, §15B(1)(b))

B. Prohibited deposits

C. Deposits related to disability accommodations

D. Transfer of deposits

E. Security deposits

a. Unpaid rent,

b. Damage beyond normal wear and tear,

c. Unpaid real estate taxes if specified in the lease and cost of repairs. Landlords cannot deduct cleaning fees from security deposits.

F. Last month’s rent

III. Terminating Tenancies and Summary Process

Objective: Provide licensees with a clear understanding of legal procedures for ending tenancies, serving proper notices, navigating eviction processes lawfully, and complying with Massachusetts's new eviction sealing laws.

A. Tenancy termination types

B. Termination of tenancy at will

C. Notices to quit

D. Prohibited eviction practices

E. Summary process procedures

F. Handling abandoned property (M.G.L. c. 271 of the Acts of 2004)

G. Eviction Record Sealing (Effective May 2025)

IV. Landlord Liability and Legal Violations

Objective: Help licensees recognize conditions and actions that may create liability for landlords, and recommend appropriate corrective practices to maintain legal compliance.

A. Unsafe property conditions

B. Failure to reimburse for authorized repairs

C. Noncompliance with state/local housing codes

D. Demands for improper payments (e.g., real estate taxes)

E. Lack of clear, comprehensible lease agreements

F. Denying tenant access without court order

G. Interest abuse: charging for <30-day period

H. Failure to disclose fees or late penalties

I. Violations of tenant's right to quiet enjoyment

V. Consumer Protection and Fair Business Practices

Objective: Prepare licensees to identify, prevent, and address unfair or deceptive rental practices in compliance with consumer protection laws.

A. Violations of M.G.L. c. 93A and 940 CMR 3.17

B. Lease agreements must be clearly written and understandable

C. Violations of M.G.L. c. 186 considered violations of M.G.L. c. 93A

Important Cases for Discussion:

• Boston Housing Authority v. Hemingway (1973)
• Berman & Sons, Inc. v. Jefferson (1979)
• Attorney General v. Brown (1987)
• Gnerre v. Massachusetts Commission Against Discrimination (1988)
• Attorney General v. Dime Savings Bank of NY (1992)
• Cruz Management Co. v. Thomas (1994)
• Papadopoulos v. Target (2010)

Suggested Handouts:

• "Get the Lead Out" program details
• Sample lease, fee disclosure, and statement of condition
• Landlord Rights & Responsibilities (Mass. Association of REALTORS®)
• Tenant Rights & Responsibilities (Mass. Office of Consumer Affairs)
• Legal Tactics: Tenants' Rights in Massachusetts, 6th Ed.

Authority:

• M.G.L. c. 112, §§ 87PP–87DDD1/2
• 254 CMR §§ 2.00–7.00
• M.G.L. c. 186, §§ 1–21 (residential rental)
• M.G.L. c. 111, §§ 189A–199B (lead)
• 105 CMR 410 (State Sanitary Code)
• M.G.L. c. 93A (Consumer Protection)

Duration: 2 hours
Intended Audience: Massachusetts licensed real estate brokers and salespersons
Instructional Method: Lecture, case study, discussion
 

Last updated:	November 25, 2025