Massachusetts Rental Fees and Automatic Lease Renewals
Massachusetts rental advertisements and automatic lease renewals are covered by the Attorney General’s unfair and deceptive fees regulations, 940 CMR 38.00. The regulations apply to acts committed or practices in force as of September 2, 2025. The Attorney General’s accompanying guidance explains how these rules affect residential landlords and tenants.
Advertised rent should reflect mandatory charges
A residential listing may advertise the total monthly price instead of the total rent for an entire year. However, the advertised monthly amount must include mandatory fees, and the lease period must be clearly and conspicuously disclosed. Section 38.04 expressly requires disclosure of “the full period covered by the rental or lease.” A monthly price does not, by itself, mean the proposed tenancy is month-to-month.
The guidance explains that a fee is not truly optional when consumers cannot reasonably avoid it. For example, a credit card processing charge must be included in the total price when no other viable payment option exists. A fee automatically added unless the customer notices and challenges it is also treated as part of the total price.
Genuinely optional services can be treated differently. Once a tenant chooses an optional feature that increases the price, the quoted total must reflect that selection. Calling a charge optional is insufficient if the actual payment process makes it unavoidable.
Clear disclosure does not authorize every fee
If a landlord separately identifies a fee, its description must accurately explain its nature and purpose. An all-inclusive price is permitted; the guidance does not require every internal cost to be itemized.
These disclosure rules must be considered alongside other applicable housing laws. Landlords should separately review whether a proposed charge may lawfully be collected. Describing a prohibited charge clearly does not make it permissible. The guidance also explains that submetered water and sewer charges must comply with the laws governing those charges, including G.L. c. 186, § 22.
Automatic renewal clauses can require additional notices
The guidance expressly states that residential agreements can contain a “Negative Option Feature” when a tenant’s silence or failure to cancel is treated as continuing acceptance. Examples include month-to-month arrangements and fixed-term leases that automatically convert to month-to-month tenancies.
Where the agreement requires the tenant to act by a deadline to avoid automatic renewal, the landlord must consider the notice requirements in 940 CMR 38.05(4)–(6). For a negative option feature exceeding 31 days, § 38.05(4) requires written notice “within no more than 30 and no fewer than five calendar days” before the cancellation deadline. The relevant date is the deadline to prevent the next financial obligation, which may precede the renewal date.
The notice must explain the financial obligation, what will renew, how to cancel, the cancellation deadline, and when the obligation will arise. Delivery must also satisfy the applicable communication requirements. For features lasting 31 days or less, § 38.05(6) provides an alternative notice approach that includes the amount charged at renewal and cancellation instructions at least as frequently as the consumer is charged. A compliant existing bill may satisfy that requirement; an ordinary rent statement without the required information may not.
Review the lease and the actual process together
Landlords should compare their listings, fee descriptions, payment options, renewal clauses, and notice procedures. Tenants should retain the listing, signed agreement, payment records, and renewal communications. The guidance measures the duration of a negative option feature from acceptance to the date cancellation is required to avoid a new charge; monthly billing alone does not determine which notice rule applies.
Preventing an automatic renewal is different from ending an existing contractual commitment. The guidance distinguishes renewal features from installment obligations, and canceling renewal does not necessarily eliminate amounts already owed under the current term. Special circumstances and other landlord-tenant requirements may affect the analysis. An attorney should review the agreement and facts before either party assumes that a renewal, cancellation, or charge is enforceable.
Official materials
Legal Disclaimer. Originally published: 10/17/2026. This article provides general information only and is not legal advice for any particular matter. Laws, policies, procedures, fees and agency practices may change; their application depends on the facts and jurisdiction. Consult a qualified attorney about your circumstances before acting on this information. Reading this article or contacting Blumsack & Canzano does not, by itself, create an attorney-client relationship. Past results do not guarantee future outcomes. This material may be considered attorney advertising in some jurisdictions.
