Massachusetts has many rules and statutes regulating its housing market. These must be fully considered when preparing an application for rental properties in the state.
Application Fee
A landlord in Massachusetts is not permitted to charge an application fee.
On the other hand, in compliance with § 254 CMR 7.00(1), real estate brokers and agents are permitted to charge a fee for rental applications (Section 15B(1)(b)).
Security Deposit
Landlords in Massachusetts can charge up to the cost of one month's rent for security deposits (Section 15B(1)(b)(iii)).
You are required to put the deposit in a separate interest-bearing account in a bank found in Massachusetts.
Housing Discrimination Law
Under Massachusetts General Laws Chapter 151B, it is illegal to discriminate in housing based on several protected classes. Massachusetts law is actually broader than the federal Fair Housing Act (FHA), protecting additional characteristics:
- Race and Color
- Nationality and Ancestry
- Religion
- Sex, Sexual Orientation, and Gender Identity
- Familial status (presence of children)
- Disability
- Genetic information
- Marital status
- Veteran or active military status
- Age (except for minors)
- Source of income (such as Section 8 vouchers)
Research into the Boston area has highlighted significant disparities in the housing market. For instance, a Federal Reserve Bank of Boston report found that 70% of voucher holders reported experiencing discrimination. Among Black applicants, 80% reported issues with landlords refusing vouchers, compared to 57% for other racial groups. Additionally, while the white homeownership rate in Massachusetts is approximately 70.4%, it is significantly lower for Black (38.6%) and Hispanic (31.6%) residents.
Notice of Eligibility
Potential tenants must be informed about the screening criteria and reasons for denial or approval. To prove that these facts were shared, a signature of acknowledgment must be provided within the application or alongside it.
Consent Credit Check
The Federal Credit Reporting Act (FCRA) stipulates that potential tenants must agree to any credit checks you require to assess their suitability. To show they consent, they must provide written acknowledgment on the application form.