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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.
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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.
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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.
And if the landlord fails...
- to deposit the security deposit into a
bank account;
- to return the security deposit (or balance
after lawful deductions) with interest within 30 days after termination of tenancy; or
- to transfer the security deposit or last
month’s rent to the new landlord;
... you are entitled to the immediate
return of your security deposit AND triple damages, plus court costs, and reasonable
attorney’s fees. You also are entitled to triple damages, court costs, and reasonable
attorney’s fees if the landlord fails to pay interest on the last month’s rent
within 30 days after termination of tenancy.
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