Why Massachusetts needs
a rent escrow law

The eviction laws in Massachusetts constitute legalized theft. Non-paying tenants can live rent-free for many, many months, even years, using the “free rent trick.” That’s when nonpaying tenants call in the housing inspector AFTER they receive an eviction notice, get code violations cited in their apartment that they never complained about before, and then claim they are “withholding” their rent under state law (M.G.L. Ch. 239, sec. 8A), making them unevictable. The tenants continue to block their eviction by making sure they continue to have code violations. So they refuse access for repairs, they undo repairs, and/or they deliberately damage their apartments to create further code violations – all delaying their eviction while they pay no rent.

The “free rent trick” is disastrous for owners, but also for other tenants, the housing and the neighborhoods. Since the value of buildings is eroded by lack of rental income, the local government loses out seriously on property tax revenue, especially from lower-income neighborhoods. The state loses income tax revenue from owners who do not collect the full rental income stream their properties could produce.

The solution to this legalized theft is a rent escrow law for Massachusetts. Under such a law, whenever a tenant claims to withhold rent, they must place the withheld rent in an escrow account at the local district or housing court. After all repairs are complete, the withheld rent is paid out to the owner and tenant as they may agree or as the court may direct. This solution would protect owners against loss of legally owed rent, yet would retain the tenant’s right of a strong incentive to force owners to make demanded repairs through withholding of rent.

The articles below address this problem by telling actual “horror stories” of the free rent trick or by discussing the issue in general.

Cat Lady stymies health inspectors
Their jobs depend on free rent trick.

Attention:
Here is your ticket to free rent.

Rent escrowing is constitutional
 

Are landlord-tenant laws creating SLUMS?
Housing inspectors talk.
 

$471 million lost taxes
 

List of code violations cited for free rent trick
 

Rent withholding.
Wrecking owners, housing and neighborhoods.

Bankruptcy horror story.
Legal tricks with code violations
 

Tenant plays free rent trick, hits landlord with fry pan
 

Using code violations
to live rent-free.