What Constitutes Rent

For purposes of this regulation "rent" means the amount paid to a landlord by a tenant for the rental or lease of premises which are occupied as a principal residence located in Massachusetts. Rent may include the rental of a mobile home or of a mobile home site. Payments by a tenant-stockholder of a cooperative housing corporation to the corporation and payments by an owner of a condominium unit to the condominium association are not rent. Consideration paid for the occupancy of a "hotel", "lodging house" or "motel", as defined in M.G.L. c. 64G, § 1, or similar occupancies, is not rent unless and until such premises are occupied under a rental agreement, written or oral, creating a landlord-tenant relationship. In determining the amount of the deduction, rent includes the amount paid for heat, hot water, gas, electricity, furniture or parking, if the landlord makes no separate charge for these items. But if charges for these items are separately stated at the time of rental, in the rental agreement or otherwise, such charges do not constitute rent for purposes of the rental deduction. Example : Under the terms of E's lease the rental price of his unit is $300 per month, which includes the cost of heat and hot water. The lease provides for an additional charge of $25 per month for a parking space. E pays for his own electricity. E's rental deduction for each month of occupancy for which rent is paid is $150 (50% of $300 rent). Where a tenant provides services to a landlord and in consideration for such services receives a reduction in rent, rent is the actual amount of money paid by the tenant to the landlord; rent does not include payments in kind. Example : M, a tenant in N's apartment building, tends the garden surrounding the building. In consideration for this service M is charged only $250 per month for the right to occupy his apartment unit; other tenants, occupying similar units, are charged $300 per month. M's rental deduction for each month of occupancy for which rent is paid is $125 (50% of $250). Rent does not include amounts paid as a security deposit or amounts paid for the last month's rent upon entering into a lease, unless and until applied to unpaid rent.