VERY HIGH RISK

Massachusetts

Security deposit laws

Massachusetts security deposit laws are detailed under Chapter 186, Section 15B of the Massachusetts General Laws. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Massachusetts law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

Landlords in Massachusetts may not require a security deposit that exceeds the amount of one month's rent.

Options for Holding

The security deposit must be held in a separate, interest-bearing account in a Massachusetts bank. The account must be held in trust for the tenant and cannot be commingled with the landlord’s personal funds.

Notification Requirements

Within 30 days of receiving the security deposit, the landlord must provide the tenant with:

  • The name and location of the bank where the deposit is held.
  • The account number of the security deposit account.
  • A receipt stating the amount of the deposit.

Payment of Interest Earned

Interest earned on the security deposit must be paid to the tenant annually, or at the end of the tenancy. The interest rate is typically 5% per annum, or the actual interest earned if lower.

Returning

Timeline for Returning

The landlord must return the security deposit, along with any accrued interest, within 30 days after the tenant vacates the property.

Claims Process

Deductions from the security deposit can only be made for unpaid rent, unpaid utility bills (if agreed upon), or damage beyond normal wear and tear. The landlord must provide an itemized list of damages, along with receipts or written estimates for repairs, within 30 days of the tenant vacating the property.

If the tenant believes the deductions are unjustified and negotiations fail, the tenant can take legal action by filing a claim in small claims court. The court will review the evidence from both parties and make a determination on whether the deductions are warranted.

Permissible Deductions

Massachusetts landlords may deduct from a security deposit for the following reasons:

  • Unpaid rent or utilities.
  • Damages beyond normal wear and tear.
  • Costs of repairs for damages caused by the tenant.

Penalties

If a landlord fails to comply with the security deposit law, they may be liable to pay the tenant three times the amount of the deposit, plus interest and attorney’s fees.

Special Circumstances

If a property is sold, the new owner must assume responsibility for the security deposit and provide the tenant with updated bank account information within 45 days.

The security deposit cannot be used for last month's rent unless explicitly agreed upon by both parties.

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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