General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- A security deposit cannot be more than one month of rent.
- The landlord must return the deposit, or the balance after lawful deductions, within 30 days after the tenancy ends.
- Deductions for damage require an itemized list signed under the pains and penalties of perjury, with estimates, bills or receipts, sent within the same 30 days; damage noted on the move in condition statement cannot be charged.
- The tenant earns interest at 5 percent a year, or the lower rate the bank pays, from the start of the tenancy, paid each year and at the end of the tenancy.
- A landlord who fails to hold, return or account for the deposit properly can owe three times the deposit, plus 5 percent interest, court costs and attorney fees, and loses the right to keep any of it for damage.
Massachusetts has one of the strictest deposit laws in the country. Deposits are capped at one month of rent, must sit in a separate interest bearing Massachusetts bank account with receipts and a condition statement, and mistakes can cost the landlord three times the deposit.
Massachusetts security deposits at a glance
| Rule | Massachusetts | Law |
|---|---|---|
| Deposit limit | A security deposit cannot be more than one month of rent. | G.L. c.186, section 15B |
| Deadline to return the deposit | The landlord must return the deposit, or the balance after lawful deductions, within 30 days after the tenancy ends. | G.L. c.186, section 15B |
| Itemized deductions | Deductions for damage require an itemized list signed under the pains and penalties of perjury, with estimates, bills or receipts, sent within the same 30 days; damage noted on the move in condition statement cannot be charged. | G.L. c.186, section 15B |
| Interest on deposits | The tenant earns interest at 5 percent a year, or the lower rate the bank pays, from the start of the tenancy, paid each year and at the end of the tenancy. | G.L. c.186, section 15B |
| Penalty for wrongful withholding | A landlord who fails to hold, return or account for the deposit properly can owe three times the deposit, plus 5 percent interest, court costs and attorney fees, and loses the right to keep any of it for damage. | G.L. c.186, section 15B |
How much you can collect
Deposit limit. A security deposit cannot be more than one month of rent. (G.L. c.186, section 15B)
Holding the deposit
Where the deposit is held. The deposit must be kept in a separate interest bearing account at a bank in Massachusetts, protected from the landlord's creditors. (G.L. c.186, section 15B)
Interest on deposits. The tenant earns interest at 5 percent a year, or the lower rate the bank pays, from the start of the tenancy, paid each year and at the end of the tenancy. (G.L. c.186, section 15B)
Receipts and notices. The tenant gets a signed receipt when the deposit is paid and a bank receipt within 30 days; without the bank receipt the tenant can demand the deposit back at once. (G.L. c.186, section 15B)
Deductions and normal wear and tear
A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.
Itemized deductions. Deductions for damage require an itemized list signed under the pains and penalties of perjury, with estimates, bills or receipts, sent within the same 30 days; damage noted on the move in condition statement cannot be charged. (G.L. c.186, section 15B)
Returning the deposit
Deadline to return the deposit. The landlord must return the deposit, or the balance after lawful deductions, within 30 days after the tenancy ends. (G.L. c.186, section 15B)
Penalties for wrongful withholding
Penalty for wrongful withholding. A landlord who fails to hold, return or account for the deposit properly can owe three times the deposit, plus 5 percent interest, court costs and attorney fees, and loses the right to keep any of it for damage. (G.L. c.186, section 15B)
Mistakes to avoid
- Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
- Charging for normal wear and tear.
- Missing the return deadline, even by a few days.
- Not asking for a forwarding address before the tenant leaves.
- Losing track of deposit money by mixing it with operating funds without a ledger.
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General information, not legal advice.
Verify current law
We last checked these Massachusetts rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Massachusetts attorney about your situation.
Laws named on this page
- G.L. c.186, section 15B
Official sources
Massachusetts forms for this topic
Letters and checklists for this topic
Before you act on it. Check the statute too; this is not legal advice.
Is there a limit on security deposits in Massachusetts?
A security deposit cannot be more than one month of rent. Source: G.L. c.186, section 15B.
How long does a Massachusetts landlord have to return a deposit?
The landlord must return the deposit, or the balance after lawful deductions, within 30 days after the tenancy ends. Source: G.L. c.186, section 15B.
Do Massachusetts landlords have to pay interest on deposits?
The tenant earns interest at 5 percent a year, or the lower rate the bank pays, from the start of the tenancy, paid each year and at the end of the tenancy. Source: G.L. c.186, section 15B.
What happens if a Massachusetts landlord keeps a deposit wrongly?
A landlord who fails to hold, return or account for the deposit properly can owe three times the deposit, plus 5 percent interest, court costs and attorney fees, and loses the right to keep any of it for damage. Source: G.L. c.186, section 15B.