Comprehensive Guide to Rent Control in Massachusetts: Laws and Policies

Discover the complexities of Massachusetts rent control, where rising rental prices demand a thorough understanding of current laws, historical context, and ongoing legislative efforts. Learn how rent control policies affect tenants and landlords in the nation's most expensive rental market.

By
Jennifer Kiesewetter
|
Last Updated
July 24, 2024
Comprehensive Guide to Rent Control in Massachusetts: Laws and Policies

Massachusetts boasts the most expensive rental market in the U.S. According to The Patriot Ledger, average asking rent prices in the state rose from $3,144.50 in 2019 to $3,641.75 in 2023. And Boston? 2024 rents are just under $4,000.

These increasing rates underscore the importance of understanding Massachusetts rent control policies and their implications for both tenants and landlords.

Rent control laws limit how much landlords can increase rents, aiming to keep housing affordable in cities with rising costs.

Landlords will want to monitor any rent control developments, as it will directly affect their business and investment.

This article will provide an in-depth exploration of Massachusetts rent control policies, including current laws, historical context, ongoing legislative efforts, and the role of advocacy and activism.

Understanding rent control policies: Current laws and regulations

No rent control in Massachusetts

In Massachusetts, no statewide rent control laws exist. Further, the state forbids cities and counties from enacting their own rent control legislation. This means that landlords across Massachusetts have the freedom to set their own rental prices without any governmental caps or limits.

Rent increases

While Massachusetts does not have rent control, the existing regulations surrounding lease agreements and rent increases are designed to provide some degree of predictability and protection for tenants.

For example, landlords are prohibited from raising rents during lease terms unless the rental agreement states otherwise. Any rent adjustments can only be made at the end of the lease term.

Proper notice

In Massachusetts, while landlords have the freedom to raise rents to their preferred rates, they must adhere to specific regulations regarding timing and notification to ensure fairness and transparency.

Here are Massachusetts' notice rules:

  • For tenants with annual leases, landlords are required to provide a 30-day notice before implementing any changes to the rental rate. This notice period allows tenants sufficient time to decide whether to accept the rent increase and sign a new lease or seek alternative rental housing options.
  • For month-to-month tenancies, which do not have a fixed term and continue until either party decides to terminate, Massachusetts law requires landlords to give tenants a minimum of 30 days' notice prior to raising the rent.
  • However, if the rental payments are made less frequently, such as every three months, the landlord must give notice equivalent to the rental payment period. For example, if rent is paid quarterly, the landlord must provide 60 days' notice before any rent increase.

Additionally, landlords must wait until the conclusion of the lease period before raising the rent for renters with one-year leases.

While there isn't a legally required notice period in this circumstance, landlords should act fairly and reasonably by giving tenants adequate time to consider the new rental terms so they can plan accordingly. This approach helps maintain a good landlord-tenant relationship and ensures a smoother transition when the terms of the rental agreement are updated.

These regulations are designed to balance the interests of both landlords and tenants, allowing landlords to adjust rents in response to market conditions while protecting tenants from sudden and unexpected rent increases.

Illegal rent increases

Discrimination

In Massachusetts, landlords cannot increase rent for discriminatory reasons.

This includes discrimination based on race, religion, national origin, age, ancestry, military background or service, sex, sexual orientation, marital status, disability, or the need for a guide dog. In Massachusetts, an exception to this rule applies to owner-occupied two-family dwellings.

The Federal Fair Housing Act further enforces this by making it illegal for property owners to discriminate against tenants on similar grounds.

Retaliation

Retaliation is also strictly forbidden under Massachusetts law.

A landlord is considered retaliatory if they raise rent within six months of a tenant exercising their legal rights. Instances that are considered retaliatory include when a tenant files a complaint about the health and safety conditions of the rental unit, forms or joins a union or tenant association, or requests necessary repairs.

Such actions by landlords are illegal, and tenants can contest them.

Without proper notice

Finally, while there is no statewide cap on rent increases, landlords must adhere to proper notice requirements.

Massachusetts law mandates that landlords provide written notice before raising rent, typically ranging from 30 to 90 days, depending on the lease agreement. Any rent increase without proper notice is deemed invalid.

Historical context of Massachusetts rent control

The history of rent control in Massachusetts can be divided into four distinct eras:

  • The rental housing shortages following World War I and into the 1920s
  • The impacts of World War II and the Great Depression
  • The period of local rent control leading up to the 1994 referendum
  • The 1994 referendum and the years that followed

Post-World War I and the 1920s

In the early 20th century, the rapid pace of urban industrialization in Massachusetts, intensified by the effects of World War I, led to a severe shortage of rental housing. To tackle the increasing issue of affordable housing, the Massachusetts General Court formed a commission in 1919 to investigate the factors affecting rent control.

In 1920, Massachusetts enacted emergency rent laws that declared "unjust and unreasonable rents" for residential properties as unenforceable. This statute defined unjust and unreasonable rents by capping annual rent increases at 25 percent, except in cases where significant repairs or alterations had been made.

Despite these efforts, landlords easily circumvented the law. They could still evict tenants for refusing to pay rent, even if the state deemed the rent unenforceable.

Consequently, the statute was short-lived, lasting only three years before being repealed.

World War II and the Great Depression

Massachusetts faced new housing challenges in the wake of World War II. Unlike the state-initiated law of 1920, the federal government took charge in 1942 with the passage of the Emergency Price Control Act.

This Act established the Office of Price Administration (OPA), which was empowered to designate areas as "defense rental areas" in cooperation with state and local officials. Eventually, all counties in Massachusetts received this OPA designation.

In these defense rental areas, the OPA had the authority to freeze rents at their pre-war maximums, provided there was no local opposition. Landlords were required to register with the local OPA office, report any changes in tenants or evictions, and submit petitions for rent increases.

After the war, Congress continued to extend the price control provisions each year, establishing new maximum rent caps until the Act expired in 1953. However, Massachusetts continued these rent restrictions until 1955.

Pre-1994: Rent-controlled apartments

In response to escalating rents in the 1960s, the Massachusetts State Legislature enacted the Enabling Act of 1970. This law permitted cities with populations over 50,000 to impose rent controls on buildings constructed before 1969. However, buildings with three or fewer units were exempt from this regulation. The cities affected included Cambridge, Boston, Brookline, Somerville, and Lynn.

During this era, almost 30% of rent-controlled apartments were occupied by mid- to high-income renters. This disparity was partly due to landlords favoring tenants they perceived as less risky, leading to fewer rent-controlled apartments for lower-income households.

Despite initially adopting rent control, four cities eventually moved away from strict controls:

  • Lynn repealed rent control in 1974.
  • Boston approved vacancy decontrol in 1974.
  • Somerville’s Board of Aldermen repealed rent control in 1979.
  • Brookline phased out most of its rent-controlled units in 1991.

While other municipalities eased their rent restrictions, Cambridge went in the opposite direction, having its rent control board implement the strictest form of rent control in Massachusetts.

The Cambridge Rent Control Board, a quasi-legal entity, conducted adversarial hearings to address rent increases for each rent-controlled apartment, landlord-tenant disputes, and evictions. Many landlords were frustrated by these proceedings, which often resembled court trials.

Needless to say, the Cambridge Rent Control Board did not have a good reputation among local landlords.

The 1994 referendum and the years that followed

In 1994, the Rent Control Prohibition Act banned statewide rent control in Massachusetts by a narrow margin of 51-49. This law prevented any city or town from adopting rent control locally.

Efforts to reinstate rent restrictions have repeatedly failed in the state legislature. Nevertheless, the debate persists because of ongoing concerns about affordable housing and tenant stability. Advocacy groups argue that rent regulations are crucial for stability, citing rising rent prices, financial strain on renters, and the shortage of affordable housing.

These groups warn that without these protections, many residents risk displacement and housing instability, making it difficult to maintain secure living conditions in a rapidly changing market.

Current Legislative Efforts

Ongoing legislative efforts in Massachusetts indicate an increasing push to tackle the state's housing crisis through rent control policies. This section explores recent bills, political actions, and the increasing local and statewide support for rent control or stabilization measures.

Recent bills and proposals

Recent legislative efforts in Massachusetts have focused on addressing the need for rent control amidst a growing housing crisis. Since the early 2000s, local support for rent policies has surged, driven by the increasingly severe housing crunch in the Boston area, emphasizing the need for rent-controlled units.

This interest has led to several recent bills and proposals aimed at reintroducing some form of rent regulation.

Boston: Rent stabilization petition

In Boston, this support has translated into concrete legislative action. Mayor Michelle Wu established a task force in 2022 to study rent control. She then presented a proposed Home Rule Petition to the Boston City Council on February 13, 2023.

The Council approved the petition on March 8, 2023, passing with an 11-2 vote.

This plan proposes a maximum allowable annual rent increase tied to the Consumer Price Index (CPI) plus 6%, with a cap of 10%, whichever is lower. The proposed policy exempts certain housing units, such as those built in the last 15 years and owner-occupied small properties.

Wu's approach, termed "rent stabilization" instead of "rent control," aims to mitigate the negative connotations associated with past rent control policies. This Home Rule Petition seeks to strike a balance between protecting tenants and allowing landlords to cover rising costs.

State of Massachusetts: Lift the ban petition

On August 2, 2023, a coalition of local leaders in Massachusetts filed a petition to lift the statewide ban on rent control, a policy that has been prohibited since a 1994 ballot initiative.

This petition, certified by Attorney General Andrea Campbell on September 6, 2023, aimed to move forward into the signature-gathering phase with over 500 elected officials, community leaders, and activists signing up to support the effort.

Polls indicated strong public backing, with 65% of likely voters favoring local rent control measures. Advocates, including leading economists, argued that rent control could be a critical tool in addressing the state's ongoing housing emergency by providing stability and affordability for tenants.

Despite this momentum, the statewide petition faced significant challenges and was ultimately suspended.

The campaign collected approximately 10,175 signatures, far short of the 74,574 required to advance.

Consequently, the petition was unable to move forward, leaving the state legislature as the only viable path for rent control advocates.

Advocacy groups, activist movements, and opposition

Prominent advocacy groups

Several key advocacy groups in Massachusetts have been leading the fight for rent control and tenant rights.

Organizations such as the Mass Alliance of HUD Tenants (MAHT), City Life/Vida Urbana, and Lynn United for Change are leading efforts to address the affordable housing crisis and promote rent policies that protect tenants from excessive increases and potential displacement.

These groups are instrumental in organizing grassroots campaigns, providing legal assistance, and lobbying for legislative changes at both the local and state levels.

Mission and goals

These advocacy groups aim to ensure that all Massachusetts residents have access to safe, affordable, and stable housing.

For example, MAHT focuses on empowering tenants living in HUD-subsidized housing through education, organizing, and advocacy to preserve their homes and communities.

City Life/Vida Urbana seeks to prevent displacement and foster community control over land and housing through a blend of direct action, legal strategies, and policy advocacy.

Lynn United for Change focuses on supporting low-income and immigrant communities in Lynn, Massachusetts, by advocating for affordable housing justice and tenants' rights.

These groups employ a variety of strategies to achieve their goals, including mobilizing tenants for protests and rallies, offering workshops on tenants' rights, and forming coalitions with other social justice organizations. They also engage in direct negotiations with landlords and policymakers to secure more favorable terms for tenants.

These advocacy groups aim to create a more equitable housing landscape in Massachusetts by raising public awareness and advocating for legislative reforms.

Activist movements

Major campaigns

Activist movements in Massachusetts have led several significant campaigns to address the housing crisis and advocate for rent control.

One of the most notable campaigns is the ”Homes For All" initiative,” which seeks to ensure that everyone has access to safe, stable, and affordable housing. This campaign has rallied thousands of tenants statewide to call for stronger tenant protections and the reinstatement of rent control measures.

Another significant effort is the "Right to Remain" campaign led by City Life/Vida Urbana, which focuses on preventing evictions and displacement through direct action, legal support, and community organizing.

In addition to these statewide efforts, local campaigns have also gained momentum.

For instance, the "Boston Rent Control Coalition" has been instrumental in pushing for Mayor Wu's rent stabilization plan. For instance, they have rallied community support and engaged in extensive advocacy to move the proposal through the Boston City Council and towards state approval.

These campaigns often involve a combination of public demonstrations, lobbying efforts, and strategic partnerships with other social justice organizations to amplify their impact and reach.

Success stories and challenges

Activist movements in Massachusetts have achieved several significant successes in their fight for rent-controlled apartments.

One notable success is the temporary eviction moratorium implemented during the COVID-19 pandemic, which was heavily advocated for by groups like City Life/Vida Urbana and the Homes For All coalition.

This moratorium provided crucial relief to thousands of tenants facing financial hardship and potential homelessness.

The recent approval of Mayor Wu's rent stabilization plan by the Boston City Council marks a significant victory for housing advocates, demonstrating the impact of sustained grassroots activism.

Opposition to rent control

Despite strong local support and favorable polling, Massachusetts' efforts to reinstate rent control face significant challenges at the state level. Opposition, mainly from property owners and real estate developers, is well-organized and well-funded. These contingents argue that rent control could stifle housing development, discourage investment, and lower the quality of available housing.

Critics claim that capping rent increases could lead to reduced property maintenance and deter new construction, worsening the housing shortage instead of alleviating it. This viewpoint often resonates with lawmakers focused on maintaining a robust housing market and economic growth.

Efforts to restore rent control also face logistical hurdles, such as the difficulty of gathering enough signatures for ballot initiatives. Supporters contend that the current housing emergency requires bold measures and believe that allowing cities like Boston to implement rent control could offer crucial stability and affordability for tenants.

The growing housing crisis ensures the rent control debate is far from over, with both sides preparing for a prolonged battle. Despite optimism from supporters, implementing rent control in Massachusetts remains a challenging path.

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Massachusetts ongoing efforts for rent control

Despite the ongoing rent control challenges, activist movements remain resolute in their efforts to secure housing justice in Massachusetts.

Current initiatives are focusing on building broader coalitions, increasing public awareness about the benefits of rent control and tenant protections, and promoting best practices for landlords. These practices include maintaining open communication with tenants, staying informed about local laws, and adjusting rents in line with market trends while ensuring tenant satisfaction.

Looking ahead, these movements aim to leverage the growing public support for rent control to push for more substantial legislative changes at both state and local levels.

Massachusetts Rent Control FAQs

Does Massachusetts have rent control?

Rent control is currently banned statewide in Massachusetts. This prohibition was established through a 1994 ballot initiative, preventing any city or town from implementing its own rent control measures. However, efforts to restore rent restrictions, now often termed "rent stabilization," continue to be a topic of debate among local leaders, advocates, and legislators.

Can a landlord increase my rent in Massachusetts?

In Massachusetts, landlords can raise rent at any time, provided they follow specific guidelines. They must give the required notice and cannot increase rent during the fixed term of a lease unless the lease agreement specifically allows it. Additionally, rent increases cannot be discriminatory or retaliatory against the tenant.

If a rental agreement permits a rent increase during the lease period, it must clearly specify the terms and conditions, including the exact amount. The only exception to this is a tax escalator clause, which does not require the lease to state the exact sum.

Important Note: This post is for informational and educational purposes only. It should not be taken as legal, accounting, or tax advice, nor should it be used as a substitute for such services. Always consult your own legal, accounting, or tax counsel before taking any action based on this information.

Jennifer Kiesewetter

With over eleven years of experience, Jennifer creates engaging content for the real estate, property management, legal, and business sectors. She holds degrees in Telecommunication, Communications, and Law. Jennifer simplifies complex legal and business issues, making them relevant and understandable for property managers, landlords, and investors.

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