Thinking About Renting Your ADU? Massachusetts Landlords Need to Watch These Fair Housing Rules

Accessory dwelling units (ADUs) have become an increasingly important part of the Massachusetts housing landscape. Whether you're adding an apartment for a family member, creating a source of rental income, or making better use of an existing property, an ADU can offer homeowners valuable flexibility.

But once you decide to rent that space to a tenant, you're also becoming a landlord—and that brings important legal responsibilities.

One area Massachusetts property owners should pay particularly close attention to is fair housing law, especially when advertising and selecting tenants for an ADU.

Be Careful How You Advertise Your ADU

A seemingly harmless rental advertisement can create a fair housing problem.

For example, an ADU owner might believe the apartment is best suited for one person and advertise it as “single occupant only” or “perfect for a single professional.” Unless there is a legitimate legal occupancy restriction supporting that requirement, such language may raise fair housing concerns.

The Massachusetts Association of REALTORS® recently addressed this issue through its legal hotline, cautioning real estate professionals about advertising an owner's preference for a single occupant.

Why does it matter? Occupancy restrictions can potentially discriminate against families with children or other protected groups.

Instead, landlords and their agents should focus advertising on the property itself: its size, number of bedrooms, amenities, location and legally established occupancy limits.

Your ADU May Be on Your Property, But Fair Housing Laws Still Matter

Some homeowners assume that renting an apartment located within or alongside their own residence is fundamentally different from operating a traditional rental property.

There can be important distinctions depending upon the property and circumstances, but homeowners shouldn't simply assume they're exempt from fair housing requirements.

Federal and Massachusetts fair housing laws protect individuals against housing discrimination based on numerous protected characteristics. Massachusetts protections extend beyond those established under federal law.

That makes casual statements such as “adults only,” “no children,” “ideal for young professionals,” or language expressing preferences regarding a prospective tenant potentially problematic.

Tenant Screening Should Be Consistent

Advertising isn't the only area where ADU landlords need to be careful.

Once applications begin arriving, landlords should establish objective and consistently applied screening criteria. Depending on the circumstances, those might include income requirements, rental history, references and other lawful financial qualifications.

Problems can arise when standards change depending on who applies.

For example, requiring one applicant to meet a higher income threshold than another similarly situated applicant could create legal exposure if the differing treatment relates to a protected characteristic.

Documenting your criteria before marketing the property can help create a more consistent process.

Know the Difference Between Preference and Legal Restriction

This distinction is especially important for ADUs.

A homeowner may prefer one tenant because the apartment is small, utilities are included or the ADU is located close to the owner's living space. But personal preference doesn't necessarily create a legal right to impose that restriction.

Conversely, a property may have a legitimate occupancy limitation based on building codes, permits, health and safety requirements, or another applicable law.

Before putting an occupancy restriction into a lease or rental advertisement, make sure you understand where that restriction actually comes from.

Massachusetts' ADU Expansion Creates New Responsibilities

Massachusetts' recent push to make ADUs easier to build has opened new opportunities for homeowners throughout the Commonwealth. More properties may now have the potential to accommodate an additional residential unit without the extensive zoning hurdles that once made ADUs difficult in many communities.

For homeowners, that can mean additional rental income and greater flexibility for their property.

It also means thousands of people who have never considered themselves landlords may suddenly find themselves navigating leases, security deposits, tenant screening, fair housing requirements and other Massachusetts landlord-tenant laws.

Those obligations shouldn't be an afterthought.

Before You List Your ADU for Rent

If you're preparing to rent an accessory dwelling unit in Massachusetts, it's worth reviewing your advertising, screening procedures, occupancy restrictions and lease documents before accepting a tenant.

A few words in an online listing may seem insignificant, but fair housing violations can carry serious consequences.

An experienced Massachusetts real estate attorney can help property owners understand how state and federal housing laws apply to their particular ADU and establish a rental process that protects both the landlord and prospective tenants.

Thinking about renting an ADU? Getting legal guidance before you advertise the property can help you avoid problems before they start.

Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Massachusetts landlord-tenant and fair housing laws are complex, and their application may vary depending on the specific facts and circumstances. Property owners and landlords should consult with a qualified Massachusetts real estate attorney regarding their individual situation before making legal, leasing, advertising, or tenant-screening decisions.