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

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 potential forfeiture of the entire deposit and treble (triple) damages plus attorney's fees.

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. 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.

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: The lesser of 5% per year or the actual interest rate earned by the bank account.
• 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:

• 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.

Triple Damages Penalty

If the landlord willfully fails to comply with §15B-fails to hold the deposit in a separate account, fails to provide the receipt, fails to return the deposit within 30 days, or retains the deposit without documentation-the tenant can sue for:

• Return of the full deposit.
• Three times the amount of the security deposit.
• Plus reasonable attorney's fees and court costs.

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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