Massachusetts Security Deposits
and Last Month’s Rent:
Last month’s rent is the pre-payment to the landlord for the last
month of tenancy. A security deposit is a deposit of money to the
landlord to ensure that rent will be paid and other responsibilities
of the agreement will be performed. Neither may be greater than the
amount of one month’s rent. If the landlord later raises the rent,
s/he can require you to increase the amounts of both pre-payments to
equal the new rent. Neither the landlord nor you can transfer one
for the use of the other without the other party’s consent.
Receipts: Upon receiving the
last month’s rent and/or a security deposit, the landlord must give
you a receipt for each pre-payment. If the landlord collects the
last month’s rent, s/he must give you a statement indicating that
you are entitled to interest on this rent and that you should
provide the landlord with a forwarding address at the termination of
tenancy where interest can be sent.
Interest: The Massachusetts
landlord must pay interest on both the security deposit and the
last month’s rent. The payment of interest on security deposits
and last month’s rent has been required by law since April 1,
1984. Security deposit: you are entitled to either 5% (subject to
change) interest or whatever lesser amount received from the bank
where the deposit has been held, if you live in the apartment for
at least one year. The law requires the landlord to hold a
security deposit in a separate, interest bearing account in a
Massachusetts bank. Within 30 days of receiving your deposit, the
landlord must give you a receipt identifying the bank’s name and
address, the account number, and the amount of the deposit.
Last month’s rent: you are
entitled to either 5% interest or whatever lesser amount received
from the bank where the rent was held. You do not have to live in
your apartment for one year to be eligible for the interest.
Payment of Interest: Interest
is payable to you each year on the anniversary date of your tenancy.
The landlord must send you a statement of the interest owed, and
must either include the interest, or allow you to deduct the amount
from the next rental payment. If you do not receive the interest
within 30 days of the anniversary, then you may deduct the interest
from the next month’s rent. Once you terminate your tenancy, any
interest owed to you must be paid within 30 days of termination.
Statement of Condition: If a
Massachusetts landlord or agent takes a security deposit, s/he must
give you a signed, separate statement of the present condition of
your apartment including a comprehensive list of any existing
damage. The landlord/agent must provide you with this statement upon
receipt of the deposit or within 10 days after the tenancy begins,
whichever is later. If you do not agree with the contents of the
statement, you must return a corrected copy to the landlord within
15 days after you receive the list or 15 days after you move in,
whichever is later. If you fail to return the list and later sue to
recover your security deposit, a court may view your failure to do
so as your agreement that the list is complete and correct. If you
submit a separate list of damages, the landlord must return it
within 15 days of receipt with a clear written response of agreement
or disagreement.
The signed statement and the original
condition statement are the basis upon which future deductions for
damage will be made. If the landlord does not give you a Statement
of Condition, you should write your own and send a copy to the
landlord or agent.
Damage Deduction for Security
Deposits: The landlord must return your security deposit or balance
within 30 days after the termination of tenancy. The landlord can
only deduct for the following:
any unpaid rent which has not been
withheld validly or deducted in accordance with the law;
any unpaid increase in real estate
taxes if you were obligated to pay it under a valid tax escalator
clause in your lease; and
a reasonable amount necessary to
repair any damage caused by you, any person under your control, or
any person on the premises with your consent. Pet damage can also be
deducted. You do not have to pay for reasonable wear and tear
associated with normal use.
If the premises are damaged, the
landlord must provide you with a detailed list of damages and their
necessary repairs within 30 days after the tenancy ends. The
landlord or agent must swear to this list under the pains and
penalties of perjury. In addition, the landlord or agent must
provide you with written evidence indicating the actual or estimated
cost of these repairs, such as estimates, bills, invoices, or
receipts.
Transfers of Pre-payments to New
Landlords: Upon sale or transfer of the building, the landlord must
credit the last month’s rent and security deposit with any accrued
interest to the new landlord. The new landlord must give written
notice of the transfer within 45 days of receiving your money. If
the former landlord fails to transfer the pre-payments to the new
landlord, she/he is still liable, but the new landlord shall also be
obligated to you for the amount of the pre-payments. The new
landlord can satisfy this obligation by granting you free rent for a
time equivalent to the payments made.
You are entitled to the immediate
return of your Massachusetts security deposit if the
landlord...:
fails to make the security deposit
records available for inspection during office hours; or
fails to provide you, within 30 days
of receipt of the security deposit, a receipt with the name and
location of the bank and the amount and account number of the
deposit;
makes deductions for damages and
fails to furnish you with an itemized list of damages within 30 days
after termination of tenancy; or
uses a lease which contain provisions
conflicting with the security deposit law and attempts to enforce
these provisions or attempts to get you to sign a waiver of rights.
Under the above-mentioned
circumstances, the landlord cannot keep your security deposit for
any reason, including making deductions for damages.
