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Attorney groups and legal services urge limits on tenant junk fees and clearer fee disclosures
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Summary
Legal services, consumer advocates and tenant representatives asked the committee to limit upfront and recurring rental fees (application, background, payment‑portal, renewal, attorney fee practices), cap late fees, and prohibit treating many fees as rent to avoid eviction consequences.
A panel of legal advocates urged the Joint Committee on Housing to pass bills that limit or ban common rental housing ‘‘junk fees’’ and close loopholes that let brokers or third parties impose upfront costs.
Speakers from the National Consumer Law Center, Greater Boston Legal Services and Massachusetts Law Reform Institute gave concrete examples: application and background check fees; payment‑portal convenience charges; flat monthly late fees that compound; and landlord accounting practices that treat fees as rent, jeopardizing tenants’ ability to cure arrears and avoid eviction.
Testimony described provisions that would (a) limit the types of mandatory fees landlords may collect, (b) cap late fees (witnesses described $50 maximum in some proposals), (c) require fees to be optional and clearly disclosed in leases with opt‑out procedures, and (d) prohibit landlords from charging attorney’s fees unless a court has awarded them. The bills also seek to bar counting fees as rent in ways that prevent tenants from curing arrears.
Tenant stories at the hearing recounted illegal or excessive fees that led to temporary homelessness or lengthy court fights; advocates said the changes would be particularly consequential for Black, Latinx and low‑income renters who face disproportionate fee burdens.
Committee members asked about interactions with recently passed statewide broker‑fee bans and whether regulations should be updated to coordinate with Attorney General guidance. No committee vote was taken at the hearing.
