Do's and Don'ts for Landlords

If you’re a new landlord renting your property for the first time, you might be wondering how to make the process easier. You’ll want to know your landlord rights in Massachusetts, but also the rights of your tenants and neighbors. Follow these tips and tricks for safely and effectively renting your property.

Do make sure your rents and contracts are legal

By making sure that your rental agreement is on the up-and-up, you can avoid issues down the line with tenants. The following requirements must be met for your rental contract to be legal:

  • The contract must be in writing.

  • The legal names of all the tenants must be on the lease.

  • The exact beginning and end dates of the lease.

  • The total rent amount, or the amount owed per renter.

  • When the rent payments are due

  • Any tenant restrictions.

It’s recommended that you have your contracts reviewed by a real estate attorney to ensure compliance and enforceability.

Do make sure you understand security deposits before accepting one from a tenant

Massachusetts landlords can charge the equivalent of one month’s rent as a security deposit, meaning up front deposits that are “first, last, and security” are the equivalent of three month’s rent. Check out our guide to Massachusetts Security Deposits for the ins and outs of what landlords should do with a security deposit.

Don’t discriminate

Landlords cannot discriminate based on:

  • Race

  • Religion

  • National origin

  • Family status

  • Age

  • Disability

You can only make decisions to whom to rent your property on income, credit and references. This also means you can’t advertise your property with terms like ‘great for professionals,’ ‘no students,’ or ‘no section 8.’

Do understand your hyper local market conditions when purchasing an investment property

An investment property might seem like a great deal. However, it’s crucial to understand the conditions of your market - and your hyper local market - when becoming a landlord. Especially over the past year, the rental market has fluctuated to respond to changing demand in rental properties. Consider the value of your property, the value of adjacent properties, and the typical market-rate rent for similar properties when setting your rent price

Don’t forget about mortgage interest, taxes and fees

Your tenants’ rent payments should cover your mortgage principal, but don’t forget about the other costs associated with owning and maintaining your property. When you set your rent price, make sure that you’re considering:

  • Any mortgage interest you still owe

  • Any mortgage insurance you still owe

  • City tax payments

  • Fees associated with payment processing.

These, combined with the market rents in your area, can help you determine your rental price.

Do rely on a reputable real estate attorney

It’s crucial to protect your rights and interests as a Massachusetts landlord. Having a long-term relationship with a great real estate attorney can provide a few benefits:

  • You can ask a real estate attorney questions about changes in policies and laws

  • Real estate attorneys can review contracts, leases and other legal documents

  • They can work with you in the case of an eviction, or other legally sticky area

If you’re looking to be referred to a real estate attorney, please contact Sage.

Don’t be scared to enforce the terms of your lease

Does your lease have restrictions like no smoking or no pets? If so, what is your plan if you find out your tenant is smoking or has a pet? It is important to hold your tenants responsible for holding up their end of the lease. Here are some of the steps to enforce the terms of your lease:

  • Issue a written notice

  • Legally serve the tenant with the notice

  • Ensure compliance or that the tenant has evicted the property

  • If the tenant has not complied or evicted, you begin the process of bringing them to court.

This process requires having an attorney, so it’s even more important to have that relationship already in place.

Do build solid relationships with your tenants - it’s in everyone’s best interest

It’s just as important that you hold up your end of the lease, or tenants can file a notice of landlord neglect. If tenants have issues that put you in violation of your lease agreement, comply quickly and communicate well.

The relationship between the tenant and landlord is paramount. By building and maintaining this relationship, you increase the likelihood that your tenant will be responsible and take care of your property. You also increase the likelihood that they will renew their lease and become a longer-term renter.


Massachusetts has quite strict security deposit laws as laid out in Massachusetts general law chapter 186, section 15b. Landlords and tenants alike should be aware of how security deposits are handled.

What is a security deposit?

A security deposit is an up front payment from tenants that landlords hold to cover surprise vacancies or damage beyond normal wear and tear.

How much can a landlord collect as a security deposit?

Massachusetts landlords can charge the equivalent of one month’s rent as a security deposit, meaning up front deposits that are “first, last, and security” are the equivalent of three month’s rent. 

What should a landlord do when they receive a security deposit?

Landlords have a number of responsibilities with security deposits:

  1. Provide a receipt

  2. Provide a written statement of the condition of the apartment

  3. Keep the deposit in its own unique bank account

  4. Pay 5% annual interest

What can a landlord spend a security deposit on?

A landlord may take a security deposit to cover these expenses:

  • Damages

  • Cleaning costs

  • Unpaid rent

  • Unpaid bills

Basically, the landlord can dip into the security deposit if the tenant has caused any unreasonable damage or failed to fulfill their financial obligations for the unit.

How should a landlord return a security deposit?

The laws behind returning security deposits in Massachusetts are strict. Within 30 days of the termination of the lease, landlords must:

  • Pay 5% interest

  • Return an itemized list of damages with receipts and photographic evidence

  • Return a copy of the original condition statement

If landlords fail to execute any aspect of the security deposit process, they may be liable for damages.

Disclaimer: The Site cannot and does not contain legal advice. The legal information is provided for general informational and educational purposes only and is not a substitute for professional advice. Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. We do not provide any kind of legal advice. THE USE OR RELIANCE OF ANY INFORMATION CONTAINED ON THIS SITE IS SOLELY AT YOUR OWN RISK. If you have legal questions, contact an attorney or email me at Sage@CambridgeSage.com and I’ll refer you to a trusted attorney.

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Massachusetts Security Deposit Law: What are the Rules?