Massachusetts Security Deposit Laws: The Strict Rules of §15B

Rooted in the legal authority established upon the Commonwealth's statehood on February 6, 1788, Massachusetts General Laws Chapter 186, Section 15B is widely considered one of the strictest security deposit statutes in the United States. The penalties for non-compliance are severe, including the forfeiture of the entire deposit and treble (triple) damages plus attorney's fees. Under Massachusetts law, this is a strict liability statute; good faith or lack of intent is not a defense against damages.

Official Law Citation: Massachusetts General Laws Chapter 186, Section 15B.

Maximum Deposit Amount

A Massachusetts landlord can collect a maximum of one month's rent as a security deposit.

What Else Can a Landlord Collect at Move-In?

At the time of signing the lease, a landlord may collect up to four payments:

1. First month's rent.
2. Last month's rent (this is a separate legal instrument from the security deposit and has its own interest rules).
3. Security deposit (maximum one month's rent).
4. Cost of a new lock and key.

No other fees may be charged at move-in. Charging a non-refundable "pet deposit," "cleaning fee," or "move-in fee" is illegal.

Mandatory Separate, Interest-Bearing Account

The security deposit must be placed in a separate, interest-bearing bank account in a Massachusetts bank, protected from the landlord's creditors. The landlord's personal funds cannot be commingled with the tenants' deposit funds.

Required Receipt

Within 30 days of receiving the security deposit, the landlord must provide the tenant with a written receipt containing:

• The amount of the deposit.
• The name and location of the bank where it is deposited.
• The account number.

Failure to provide this receipt results in the forfeiture of the right to retain the security deposit.

The Statement of Condition

Within 10 days of the tenant moving in (or receiving the deposit, whichever is later), the landlord must provide a detailed, written Statement of Condition. This document describes the exact condition of the apartment at the start of the tenancy—every scratch, stain, and crack.

• The tenant then has 15 days to review, amend, and return the Statement of Condition.
• If the landlord fails to provide this statement within 10 days, they forfeit the right to make any deductions from the deposit for property damage.

Annual Interest Payments

The landlord must pay the tenant annual interest on the security deposit.

• Rate: 5% per year, or the actual interest rate received from the bank if the deposit is held in a separate interest-bearing account as required.
• Timing: Interest is due on the anniversary of the tenancy and may be deducted from the rent.

If the landlord fails to pay the annual interest, the tenant may deduct it from the next month's rent.

30-Day Return Deadline

Within 30 days of the termination of the tenancy (or the tenant vacating, whichever is later), the landlord must return the deposit (plus accrued interest) minus any lawful deductions.

Permissible Deductions

Deductions must be accompanied by an itemized list of damages with either actual receipts or written estimates. This list must be sworn to under the pains and penalties of perjury. Landlords may deduct for:

• Unpaid rent (not including the last month's rent if already collected).
• Damage to the unit beyond normal wear and tear, as documented by the Statement of Condition.
• Unpaid increases in real estate taxes if the tax escalation clause was part of the lease.

Failure to provide this sworn itemized list within 30 days results in the forfeiture of the right to retain any portion of the deposit.

Triple Damages Penalty

Massachusetts law imposes strict liability for specific violations of §15B. A tenant shall be awarded three times the amount of the security deposit (plus 5% interest, costs, and attorney's fees) ONLY if the landlord fails to:

• Deposit the funds in a separate, interest-bearing account in a Massachusetts bank, protected from the landlord's creditors (§ 15B(6)(a)).
• Return the deposit (or the balance thereof) to which the tenant is entitled within 30 days after the termination of the tenancy (§ 15B(6)(d)).
• Transfer the security deposit to a successor in interest (new owner) (§ 15B(6)(e)).

Other violations, such as failing to provide a receipt, the Statement of Condition, or documentation for deductions, result in the forfeiture of the right to retain the deposit. If the landlord fails to return the funds within the 30-day statutory window after such a forfeiture, they may then be subject to treble damages.

How Landager Helps

Massachusetts §15B leaves zero room for error. Landager automates the entire deposit lifecycle: generating compliant Statements of Condition at move-in, tracking the 30-day receipt deadline, calculating annual interest payments, and creating the 30-day itemized deduction letter at move-out. Protect yourself from triple damages with Landager.

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