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There are two options for how to renew a lease in Massachusetts. You can sign a completely new lease with the tenants, or you can agree in writing to modify or continue the existing lease.
As long as the landlord isn't retaliating against you for some reason by not renewing your lease, he/she is under no obligation to allow you to renew a lease outside of the existing lease agreement.
Last month's rent - The tenant is entitled to either 5% interest or whatever lesser amount is received from the bank where your rent was held. If the last month's rent is not held in a bank account, the landlord must pay 5% interest per year.
Late Payment Penalty: A landlord cannot charge interest or a penalty on late rent until 30 days after the due date. However, the landlord can begin the eviction process immediately, even if the rent is only one day overdue. The landlord also cannot use a reverse penalty clause to encourage you to pay early.
Rent and Late Fees Grace period: There is a rental grace period of 30 days (MGL c. 186 § 15B(1)(c)). Late fees: Charging a late fee is allowed, but not required (MGL c. 186 § 15B(1)(c)).
As long as the tenant does not violate any rules, they can stay until their rental period ends. But if they stay in the property even a day after their lease/rental agreement ends and have not arranged for a renewal, landlords can issue a written 30-Day Notice to Vacate.
Massachusetts. There is no maximum late fee applicable to overdue invoices in Massachusetts. Businesses do, however, need to provide their clients with a 30-day grace period before charging late fees on overdue balances.
If the landlord is terminating your tenancy for non-payment of rent, s/he must send you a "14-Day Notice to Quit" (M.G.L.c.186, §§ 11 and 12). Your lease will specify the notice requirement for other terminations; it is typically seven days.