Renting out a home in Massachusetts: a compliance checklist

What you may collect before move-in

Massachusetts lists the amounts a landlord may require at or before the start of a tenancy. Anything not on the list, such as an application fee or a separate pet deposit, may not be required.

Handling the security deposit

The security deposit statute is detailed, and its penalties are strict. Many owners decide to collect only first and last month’s rent for that reason. If you do take a deposit:

• Hold it in a separate, interest-bearing account in a Massachusetts bank, protected from your creditors
• When you take the deposit, give the tenant a signed receipt; within 30 days, give a second receipt naming the bank and its address, the amount and the account number
• Give a written statement of the unit’s condition at the time of the deposit or within ten days after the tenancy begins, whichever is later; the tenant may add comments within 15 days of receiving it or of moving in, whichever is later, and you must then return a copy within 15 days, either signed in agreement or with your written disagreement
• Pay interest each year at 5%, or the rate the bank actually pays if lower; the same applies to last month’s rent
• Return the deposit with interest within 30 days after the tenancy ends, less only unpaid rent, certain tax increases under a valid escalation clause, and the reasonable cost of repairing damage beyond normal wear and tear
• Any deduction for damage needs an itemized list signed under penalties of perjury, with written evidence such as estimates, bills, invoices or receipts

Broker fees after August 1, 2025

A broker’s fee in a rental may now be paid only by the party who first engaged the broker and entered into an agreement with them. If an owner lists with a broker, the owner pays that broker. A tenant who separately hires their own broker pays their own. Make the arrangement explicit in the listing agreement before marketing begins.

Habitability: the State Sanitary Code

Chapter II of the State Sanitary Code, 105 CMR 410, sets minimum standards for every rental. From September 15 to May 31, heated space must be kept at 68°F or more between 7:00 a.m. and 11:00 p.m. and 64°F or more overnight, without exceeding 78°F. Smoke and carbon monoxide alarms must be installed and working.

Some cities add their own requirements. Boston, for example, requires rental units to be registered. Check the rules in the city where the property sits.

Lead paint

For housing built before 1978, provide the federal lead disclosure and EPA pamphlet before the lease is signed, along with the Massachusetts tenant lead law notification. If a child under six lives in the unit, the owner must delead it or bring it under interim control. It is unlawful to refuse to rent to a family, or to evict one, because a child would require lead work.

Fair housing and retaliation

Massachusetts fair housing law covers more than the federal list. Among other protections, it is unlawful to refuse a tenant because they receive public assistance or a housing subsidy, including Section 8, or because they have children, subject to narrow exceptions. Apply the same written screening criteria to every applicant and keep the record.

A landlord may not retaliate against a tenant for reporting code violations or exercising legal rights. Notice of termination, a rent increase or other adverse action within six months of such activity is presumed to be retaliation unless the landlord shows otherwise.

Owners who live outside the United States

Rent paid to a nonresident alien owner is generally subject to 30% federal withholding on the gross amount. An owner can instead elect to treat the rental as a business, give the tenant or property manager Form W-8ECI, and file a US return each year, which allows expenses and depreciation to be deducted. Massachusetts also taxes rental income from property in the state; nonresidents file Form 1-NR/PY. Arrange this with a tax adviser before the first rent payment.