Real Estate Management Advisory: Disclosure Requirements on Past Due Rent Notices & Extension of Court Closures
On April 20, 2020, Governor Baker signed an eviction moratorium into law (the “Moratorium”). Among the several provisions of the Moratorium was a prohibition on sending notices to quit to tenants. Despite this prohibition on notices to quit, we encouraged you to continue sending past due rent notices to your tenants that are behind on their payments of rent (“Past Due Notices”).
On Friday, April 24, 2020, the Executive Office of Housing and Economic Development issued “COVID-19 Emergency Regulations” which, among other things, impose an obligation to include certain disclosures on Past Due Notices. Most importantly, the Regulations require landlords including management companies to include the following disclosures on any Past Due Notices that are sent to tenants:
THIS IS NOT A NOTICE TO QUIT. YOU ARE NOT BEING EVICTED, AND YOU DO NOT HAVE TO LEAVE YOUR HOME. An emergency law temporarily protects tenants from eviction during the COVID-19 emergency. The purpose of this notice is to make sure you understand the amount of rent you owe to your landlord.
For information about resources that may help you pay your rent, you can contact your regional Housing Consumer Education Center. For a list of agencies, see https://www.masshousinginfo.org/regional-agencies. Additional information about resources for tenants is available at https://www.mhp.net/news/2020/resources-for-tenants-during-covid-19-pandemic.
You will not be subject to late fees or a negative report to a credit bureau if you certify to your landlord in writing within 30 days from the missed payment that your non-payment of rent is due to a financial impact from COVID-19. If possible, you should use the approved form at: https://www.mass.gov/lists/moratorium-on-evictions-and-foreclosures-forms-and-other-resources. If you cannot access the form on this website, you can ask your landlord to provide the form to you. You may also send a letter or email so long as it contains a detailed explanation of your household loss in income or increase in expenses due to COVID-19.
The Regulations require this language to be located “prominently” on the first page of the notice. Therefore, be sure that you do not use small print for this language and do not put it on the second page or rear side of any of your Past Due Notices. There is no requirement that this language be the first thing contained on your Past Due Notices.
The Regulations also provide certain opportunities for a landlord to utilize a tenant’s last month’s rent to satisfy rental arrearages. If you want to explore the ability to use a tenant’s last month’s rent, please contact us and we will advise you if you are eligible to do so.
Finally, the Courts extended the date of their physical closures to June 1, 2020. That said, the Courts are always available to address any emergency matters. To that end, please contact us if you believe you are confronted with an emergency situation and we will utilize the Courts to the extent permitted.
As always, please feel free to call or email any member of the Krems, Jackowitz & Carman, LLP Real Estate Management Team with any questions.
Kenneth A. Krems-David R. Jackowitz-Scott D. Carman
Krems, Jackowitz & Carman, LLP
141 Tremont Street, Boston, MA 02111
Telephone: (617) 556-0244
KKrems@kjcllp.com