Massachusetts residential landlords and property management companies have another important compliance requirement to keep on their radar. The Massachusetts Attorney General’s Unfair and Deceptive Fees regulation, 940 CMR 38.00, established new requirements regarding how prices and fees must be disclosed to consumers—including prospective residential tenants.
The regulation’s enforcement provisions became effective on September 2, 2025, which means landlords and property managers should already be reviewing their rental advertisements, leasing procedures, fee disclosures, and other communications with prospective tenants for compliance.
What Is 940 CMR 38.00?
The Massachusetts Attorney General adopted 940 CMR 38.00 to address unfair or deceptive practices involving fees and the presentation of prices to consumers.
The regulation generally requires businesses to clearly and conspicuously disclose the “Total Price” of a product when pricing is presented. Importantly for the rental housing industry, the regulation defines a “Product” to include dwelling units available for rent or lease, and the definition of a “Sale” includes a lease or rental.
That means residential landlords and property management companies are subject to these requirements when advertising and offering rental housing to Massachusetts consumers.
What Does “Total Price” Mean for a Rental Property?
Under the regulation, “Total Price” generally means the maximum price a consumer must pay for a product, including fees, charges, or other required expenses, subject to certain exclusions specified in the regulation.
For residential rentals, landlords are permitted to advertise the Total Price as a periodic amount, such as a monthly amount, rather than presenting the entire cost of a year-long lease as one number. However, the full period covered by the rental or lease must also be clearly and conspicuously disclosed.
For example, landlords should be thinking beyond simply asking, “Did we list the monthly rent?”
They should also consider whether mandatory charges associated with renting the unit have been properly incorporated into and disclosed with the Total Price and whether other applicable fees have been adequately explained.
Fees Must Be Disclosed Clearly
The regulation does more than require disclosure of the Total Price. At the time the Total Price is initially presented, landlords must also clearly and conspicuously disclose the nature, purpose, and amount of applicable fees, charges, or other expenses imposed on the transaction, subject to the regulation’s exclusions.
If a particular fee is optional for the tenant or can be waived by the landlord, that must also be disclosed. The consumer must also receive readily available instructions explaining how the optional or waivable charge can be avoided.
In practical terms, burying additional charges in fine print, waiting until later in the leasing process to reveal them, or presenting a rental at an attractive base price that does not accurately reflect mandatory costs may create compliance problems.
The Total Price Must Be Prominent
Where the regulation requires disclosure of the Total Price, that price generally must be displayed more prominently than other pricing information.
This requirement is particularly important when reviewing online rental listings, property management websites, advertisements, social media posts, brochures, and other marketing materials.
A landlord or property manager should therefore consider the overall presentation—not simply whether a fee technically appears somewhere in the advertisement.
The question becomes: Can a prospective tenant readily understand what they will actually be required to pay?
Disclosures May Be Required Before Collecting Personal Information
Timing is another important part of the rule.
Subject to limited exceptions contained in the regulation, the Total Price must be clearly and conspicuously disclosed before requiring the consumer to provide personal information.
For property managers using online lead forms, application portals, rental websites, or automated leasing systems, this requirement deserves particular attention. The pricing and disclosure process should be reviewed alongside the technology being used to collect information from prospective tenants.
Landlords should not assume that disclosure at the lease-signing stage is necessarily sufficient.
Avoid “Surprise” Fees During the Leasing Process
The overall purpose of the regulation is transparency. Prospective tenants should not move through the rental process believing that a unit costs one amount only to discover additional mandatory charges later.
Massachusetts real estate educational materials addressing the regulation emphasize that rental advertising should reflect the true all-in cost, that fees should be disclosed upfront, and that undisclosed add-ons should not appear after a prospective tenant has already begun the application process.
For landlords and property management companies, this makes it important to examine the entire tenant acquisition process—from the first advertisement through application, approval, lease execution, and applicable continuing charges.
Why Compliance Matters
940 CMR 38.00 is more than a suggested best practice.
The regulation defines certain failures involving pricing and fee disclosures as unfair or deceptive practices under Massachusetts General Laws Chapter 93A, Section 2.
That distinction matters.
Massachusetts landlords are already operating within a highly regulated environment, and seemingly small mistakes in advertising, documentation, disclosures, or leasing procedures can create larger legal issues. The new fee regulation adds another area where landlords should make sure their practices and documentation are current.
What Should Massachusetts Landlords Review?
Residential landlords and property management companies should consider conducting a comprehensive review of their rental and leasing practices, including:
- Rental advertisements and online listings.
- Property management and leasing websites.
- Application portals and lead-generation forms.
- Mandatory fees and recurring charges.
- Optional or waivable fees and instructions for avoiding them.
- Written fee schedules.
- Leasing documents and disclosures.
- Renewal communications.
- Marketing materials that mention rental pricing.
- Procedures used by employees, leasing agents, brokers, or third-party platforms.
Consistency is important. A compliant lease document may not solve a problem created by a noncompliant advertisement earlier in the process.
Transparency Should Begin With the First Rental Advertisement
For Massachusetts residential landlords, the practical lesson from 940 CMR 38.00 is straightforward: pricing transparency needs to begin at the start of the rental process, not at the end.
Landlords and property management companies should know what charges apply to their rental units, determine how those charges are characterized under Massachusetts law, and make sure pricing and required disclosures are presented clearly and at the appropriate time.
If your rental advertisements, fee structures, application procedures, or lease documents have not been reviewed since these requirements took effect, now is a good time to take another look.
Drayton Law can help Massachusetts landlords and property management companies understand their obligations and review their rental practices and documentation for compliance with current Massachusetts landlord-tenant law. Contact Us for assistance.
