Preparing for Allston Christmas: What Massachusetts’ New “Junk Fee” Regulations Mean for Landlords

Introduction

Every year, thousands of students move apartments in Boston on September 1, a day colloquially known as “Allston Christmas” for the treasures that can be found amongst items left behind at the curb in one of Boston’s student-heavy neighborhoods.  As Massachusetts landlords prepare for these and other new tenancies, they should be aware of new requirements concerning fee disclosures effective September 2, 2025.

“Junk fees” have become a growing focus of regulatory scrutiny at both the federal and state level. These are fees and costs that are not initially disclosed to a consumer at the start of a transaction, before the consumer has shared personal information. They can also include auto-renewing subscriptions, hard-to-cancel trial offers, or recurring charges that are not clearly explained. 

Regulators worry that these later-added fees obscure the true cost or nature of a product or service, particularly when there is no readily apparent way to opt out of them, and therefore reduce transparency and interfere with informed decision-making. The Federal Trade Commission (FTC) and other regulators have deemed “junk fees” unfair and deceptive to consumers, and imposed rules focused on ensuring that consumers are better informed about fees associated with certain purchases.

The FTC’s current rulemaking has focused narrowly on sectors like event ticketing and short-term lodging, but the broader policy trend is clear. In recent years, regulatory agencies have begun targeting hidden or unclear charges across industries. Total price transparency that promotes upfront, clear, and obvious pricing is becoming a new baseline for compliance.

Massachusetts is one of the first states to apply this standard to the longer-term housing market. While FTC regulations do not currently apply to such housing rentals, Massachusetts has enacted its own regulations under Chapter 93A, the consumer protection statute, that bring residential landlords into the fold. These changes are part of a larger effort to impose more rigorous pricing and disclosure standards on the landlord-tenant relationship, aimed at increasing transparency, reducing consumer confusion, and eliminating perceived deceptive pricing practices in the rental market.[1]

For landlords and property managers, this shift has immediate implications. The new Massachusetts regulations apply not just to how rental units are advertised, but also to how lease terms, recurring charges, and current and prospective resident communications are handled. With the new regulations set to take effect on September 2, 2025, now is the time for Massachusetts landlords to audit current practices and prepare for compliance.

Massachusetts’ New Chapter 93A Junk Fee Regulations

Effective September 2, 2025, all businesses, including landlords, must disclose the total price of a product or service at the first point of contact, and before collecting any personal information from a consumer. 

For landlords, this means that any fees related to renting an apartment unit must be clearly disclosed upfront and explained in plain language. This includes amenity fees, late fees, pet fees, parking fees, and any mandatory or optional fees. Although optional fees need not be included in the total price disclosure, they must be identified and accompanied by clear instructions on how to avoid them.  

The law requires full disclosure and also mandates how the disclosure must be presented to consumers. These new rules apply to all advertising and communication mediums, including online listings, printed materials, lease applications, lease agreements, and even verbal representations.  The Attorney General’s Office has also issued guidance on how these regulations apply.

What This Means for Massachusetts Landlords

For landlords, these changes represent both a compliance challenge and an opportunity to build trust with prospective residents. “Junk fees” in the housing context could include any fee not folded into the base price of a unit. Inflating a base rent with initially undisclosed add-ons, like parking or amenity fees, could now be considered a deceptive practice under state law.

Going forward, before collecting any personal information from a prospective resident (or in a lease renewal for a current resident), a Massachusetts landlord must clearly and conspicuously:

• State the total monthly price for an apartment, including any mandatory fees or fees that “reasonable consumers would expect to be part of the purchase,” in the first display of any pricing.
• Break out each mandatory and optional fee in writing.
• Display the total price more prominently than any breakdown or alternative pricing.
• Ensure any advertised discounts are compliant with the regulatory guidance (e.g., “one free month with a 14-month lease”).
• Provide clear and simple cancellation instructions for any automatic lease renewal and for any recurring optional fees like parking, amenity, or pet fees.
• Label all charges using simple and accessible language and avoid contradictions.

Despite this guidance, ambiguities in the application of these regulations to the residential rental market and leases abound, including:

• How should landlords handle disclosure of pricing for variable services, such as utilities? The AG’s guidance states that for landlords who submeter water/sewer, compliance with other applicable laws governing submetered water/sewer utilities is sufficient.      But the guidance does not address other variable fees that may arise in the residential rental context.
• What fees are considered optional by a landlord but may be considered necessary by a renter in order to make the apartment rental serve its intended purpose?
• What mechanisms satisfy the law’s requirement for an accessible “opt-out” for lease renewals?
• How can landlords comply with the clear and conspicuous advertising requirement, especially if advertising multiple units with different price points at once?
• For “negative options” such as canceling a lease or amenity renewal, what counts as a “simple mechanism” for opting out?

How Landlords Can Comply

As the new regulations go into effect, landlords can expect some “trial and error” in applying the regulations to the practicalities of the residential rental process. However, landlords should make an effort to comply with the new regulations, to the greatest extent possible, by the time they go into effect.  Noncompliance can expose a landlord to an enforcement action by the Massachusetts Attorney General or a lawsuit under Chapter 93A, including a potential class action lawsuit. Defending against either can be time-consuming and costly.

To facilitate compliance, landlords should:

• Audit existing fees: Are they optional? Are they disclosed? Do they serve a specific, identifiable purpose?
• Update advertising and lease materials: Ensure compliance with the “clear and conspicuous” requirement. Ensure that lease materials list the total cost on the first page, in larger font than any price breakdown. The AG’s recent guidance provides examples of compliance disclosures.
• Revisit pricing strategies: Don’t list low rent numbers that exclude unavoidable charges or don’t reflect the total monthly cost.
• Implement opt-out mechanisms: Particularly for optional amenities or leases that automatically renew.
• Work with legal counsel: A compliance audit from a qualified attorney can flag potential risks before they lead to penalties. Ongoing consultation with counsel can also help landlords stay informed on developments in the interpretation and application of the regulations.

Conclusion

Massachusetts has positioned itself at the forefront of consumer protection in the housing space. By expanding the definition of “junk fees” to include those in rental transactions, the Commonwealth has made it clear that pricing transparency is essential.

For landlords, this means rethinking how they advertise, price, and manage resident relationships. In order to best be positioned for these shifting regulations, landlords should seek legal advice from a qualified Massachusetts attorney.
 

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