Massachusetts Security Deposit Law: What are the Rules?
Massachusetts has quite strict security deposit laws as laid out in Massachusetts general law chapter 186, section 15b. Landlords and tenants alike should be aware of how security deposits are handled.
What is a security deposit?
A security deposit is an up front payment from tenants that landlords hold to cover surprise vacancies or damage beyond normal wear and tear.
How much can a landlord collect as a security deposit?
Massachusetts landlords can charge the equivalent of one month’s rent as a security deposit, meaning up front deposits that are “first, last, and security” are the equivalent of three month’s rent.
What should a landlord do when they receive a security deposit?
Landlords have a number of responsibilities with security deposits:
Provide a receipt
Provide a written statement of the condition of the apartment
Keep the deposit in its own unique bank account
Pay 5% annual interest
What can a landlord spend a security deposit on?
A landlord may take a security deposit to cover these expenses:
Damages
Cleaning costs
Unpaid rent
Unpaid bills
Basically, the landlord can dip into the security deposit if the tenant has caused any unreasonable damage or failed to fulfill their financial obligations for the unit.
How should a landlord return a security deposit?
The laws behind returning security deposits in Massachusetts are strict. Within 30 days of the termination of the lease, landlords must:
Pay 5% interest
Return an itemized list of damages with receipts and photographic evidence
Return a copy of the original condition statement
If landlords fail to execute any aspect of the security deposit process, they may be liable for damages.
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