Massachusetts Security Deposit Law: A Guide for Tenants and Landlords
The Massachusetts security deposit statute is one of the strictest in the country. Small mistakes by a landlord can lead to significant liability, and tenants often do not know the rights they have. This guide explains the basics for both sides.
What a Landlord Can Collect at the Start of a Tenancy
At or before the start of a residential tenancy, a Massachusetts landlord can generally collect only: first month’s rent, last month’s rent, a security deposit no greater than one month’s rent, and the cost of buying and installing a new lock and key. Other charges collected by the landlord, such as pet fees or move-in fees, are generally not allowed.
Landlord Requirements
- Hold the deposit in a separate, interest-bearing account in a Massachusetts bank, protected from the landlord’s creditors.
- Give the tenant a written receipt when the deposit is paid, and within 30 days provide the name and address of the bank, the account number, and the amount.
- Give the tenant a signed statement of the apartment’s condition within 10 days of the start of the tenancy or of receiving the deposit, whichever is later. The tenant then has 15 days to return it with any additions.
- Pay the tenant interest on the deposit each year, and on last month’s rent.
- Return the deposit, with interest, within 30 days after the tenancy ends, less only unpaid rent and properly documented damage beyond normal wear and tear.
Deductions for Damage
A landlord who keeps any part of the deposit for damage must provide, within 30 days, an itemized list of the damage signed under the pains and penalties of perjury, together with written evidence of the repair cost, such as estimates, bills, or receipts. Normal wear and tear cannot be deducted.
Penalties for Violations
If a landlord fails to return the deposit on time, fails to transfer it properly when a building is sold, or deducts amounts not allowed by law, the tenant may be entitled to three times the deposit plus interest, court costs, and attorney’s fees. Other violations, such as failing to hold the deposit in a proper account, can require the landlord to return the deposit immediately. Security deposit violations may also support a Chapter 93A consumer protection claim.
When a Building Is Sold
When rental property changes hands, the deposit and accrued interest must be transferred to the new owner, and the new owner becomes responsible for it. Buyers of rental property should confirm deposits are accounted for at closing, because a new owner can be liable for a deposit the prior owner mishandled.
For Tenants
If your landlord has not returned your deposit within 30 days, kept money without an itemized sworn list, or never told you where the deposit was held, you may have a claim. Gather your lease, payment records, receipts, condition statement, and move-out photos.
For Landlords
Many landlords, especially owners of one or two units, are unaware of how technical this law is. If you have received a demand letter or want to make sure your practices comply before there is a problem, we can review your paperwork and help you correct issues.
How We Help
We represent both tenants and landlords in security deposit disputes, Chapter 93A demand letters, and Housing Court litigation. Learn more about our real estate and landlord-tenant practice.
Talk to a Lawyer Today
Call Muggeo & Associates at (978) 741-1177, available 24 hours a day, 7 days a week, or send us a message. Our office is at 133 Washington Street in downtown Salem.
This page provides general information only and is not legal advice. Laws and deadlines change and depend on the facts of each case. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.