Massachusetts security deposits: what renters and landlords should know

This is general information, not legal advice, and laws change. It summarizes Massachusetts General Laws chapter 186, section 15B. Read the law itself for the exact wording, and talk to a lawyer, a local tenant or landlord association, or legal aid about your situation.

How much a landlord can collect up front

At the start of a tenancy, a landlord can ask for no more than: the first month's rent, the last month's rent, a security deposit equal to no more than one month's rent, and the cost of a new lock and key. §15B(1)(b)

Receipts and where the deposit is kept

• The landlord gives a signed receipt when they take the deposit.
• The deposit must be kept in a separate, interest-bearing account at a bank in Massachusetts, protected from the landlord's creditors.
• Within 30 days of receiving the deposit, the landlord gives the tenant a receipt with the bank's name and location, the amount, and the account number.

The statement of condition

A landlord who takes a security deposit must give the tenant a written, signed statement of the apartment's condition, listing any existing damage. It's due when the deposit is paid or within 10 days after the tenancy begins, whichever is later.

The tenant then has 15 days (after receiving the statement or moving in, whichever is later) to sign it and return it, and can add a separate list of any damage the landlord missed. If the tenant does, the landlord has 15 days to sign the tenant's list or say in writing that they disagree. Keep a copy of everything. §15B(2)(c)

Your own dated move-in photos are a useful companion to this statement. They don't replace it.

Interest on the deposit

A deposit held for a year or more earns interest for the tenant: 5% a year, or less if the bank actually paid less. It's paid to the tenant each year, and if the tenancy ends before a full year, interest that has built up is due within 30 days after it ends. §15B(3)(b)

Moving out: the 30-day rule

Within 30 days after the tenancy ends, the landlord must return the deposit, with any interest owed, minus only allowed deductions. If they keep any money for damage, they must give the tenant, within those same 30 days, an itemized list of the damage and repairs, signed under the pains and penalties of perjury, along with written proof of the cost, such as estimates, bills, invoices, or receipts. §15B(4)

What can be deducted

• Unpaid rent or water charges that weren't legally withheld
• Certain unpaid real estate tax increases, if the lease has a valid tax escalation clause
• The reasonable cost of repairing damage caused by the tenant or their guests, beyond normal wear and tear

Damage that was already listed on the statement of condition (or on the tenant's own list) generally can't be charged to the tenant. §15B(4)

If the rules aren't followed

The law is strict. A landlord who, for example, doesn't hold the deposit properly, doesn't give the itemized list within 30 days, or doesn't return the balance on time can lose the right to keep any of it. In some of these situations a tenant can recover up to three times the amount owed, plus interest, court costs, and attorney's fees. A lease clause that waives these rules doesn't count. §15B(6) to (8)

For renters

• Photograph everything before you unpack, and send the photos to your landlord that week.
• Fill in the statement of condition, add anything missing, and keep a copy.
• Keep the deposit receipt with the bank details.
• When you move out, give your landlord your forwarding address in writing and take the same photos again.
• If there's a dispute, write to your landlord first. Small claims court and local tenant organizations can help.

For landlords

• Use the statement of condition, and get the tenant's list back within the 15 days.
• Keep the deposit in a separate Massachusetts bank account and send the receipt within 30 days.
• At move-out, keep the estimates, bills, and receipts for any deduction.
• Dated photos from move-in that the tenant agreed with make move-out conversations much simpler.