New laws for landlords and junk fees

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New laws for landlords and junk fees

New regulations surrounding hidden “junk fees” are set to take effect on Sept. 2 in Massachusetts. Approved by Attorney General Andrea Joy Campbell earlier this year, the rules apply to business owners across Massachusetts, including landlords.

The change requires landlords to clearly disclose the total price of a product prior to collecting personal information from potential tenants. Additionally, landlords must state the nature, purpose and total cost of a transaction upfront and explain whether charges are optional or waivable.

The new regulations also dictate specifics about cost disclosures, including size and location of written disclosures and volume, speed and cadence of audible disclosures. Additionally, digital disclosures must be unavoidable.

“We’ve all been there: booked a hotel room, purchased concert tickets or paid for a service that was advertised at one price and then charged for one exponentially higher – all because of hidden junk fees,” said AG Campbell in a press release. “These regulations seek to keep more money in residents’ pockets by combatting these unnecessary fees and ensuring consumers understand exactly how much and what they are paying for.”

In an advisory message for members, the Greater Boston Real Estate Board explained that “a landlord may opt to include a fee as part of the rent, in which case no special disclosure need be made. For example, a landlord who wants to charge $1,500 in monthly rent plus an additional $100 amenity fee may elect to simply increase the rent to $1,600.”