Security Deposit Law
What Massachusetts landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 10, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
One month's rent — no exceptions
Interest
5% per year — or the bank's actual rate if lower — paid or credited annually
Return deadline
30 days after the tenancy ends
A Massachusetts landlord may not require a security deposit greater than one month's rent. At or before move-in, the only amounts a landlord may collect are: first month's rent, last month's rent, a security deposit up to one month's rent, and the cost of buying and installing a new lock and key. Anything beyond those four charges (pet deposits, move-in fees, application fees charged by the landlord) is not permitted.
A security deposit held for one year or longer earns interest at 5% per year, or the lesser amount of interest actually received from the bank where the deposit is held. Interest must be paid or credited to the tenant each year on the anniversary of the tenancy; the landlord must give the tenant a statement showing the interest owed, and if it isn't paid within 30 days of the anniversary the tenant may deduct it from the next rent payment. Last month's rent collected in advance earns interest on the same terms.
The deposit — or the balance after lawful deductions — must be returned within 30 days after the end of the tenancy. Lawful deductions are limited to unpaid rent, unpaid increases in real-estate taxes the tenant agreed to pay, and the cost of repairing damage beyond reasonable wear and tear. Damage deductions require an itemized list, sworn to under the pains and penalties of perjury, with written documentation of actual or estimated repair costs. A landlord who misses the 30-day window forfeits the right to retain any portion of the deposit.
The deposit must be held in a separate, interest-bearing escrow account in a Massachusetts bank, protected from the landlord's creditors. Within 30 days of receiving the deposit, the landlord must give the tenant a receipt identifying the bank's name and location, the amount deposited, and the account number. A landlord who fails to deposit the funds as required, or to provide the bank receipt within 30 days, loses the right to retain the deposit and must return it on demand.
If a landlord fails to deposit the funds in a proper escrow account, fails to return the deposit or balance within 30 days, or fails to provide the required itemized statement of deductions, the tenant is entitled to damages of three times the amount of the deposit (or the balance owed), plus interest at 5% from the date the obligation arose, together with court costs and reasonable attorney's fees. §15B violations can also support claims under the consumer-protection statute (M.G.L. c. 93A).
At the moment a security deposit is received, the landlord must give the tenant a receipt showing the amount, the name of the person receiving it (and the landlord's name if received by an agent), the date, and a description of the rented premises.
The landlord must give the tenant a signed, written statement of the unit's present condition within 10 days after the tenancy begins or upon receipt of the deposit, whichever is later. The statement must include the statutory notice telling the tenant how to dispute it, and it caps what the landlord can later claim as pre-existing damage.
After receiving the statement of condition, the tenant has 15 days to submit a separate signed list of any damage the statement missed. The landlord must then return a signed agreement or a clear written disagreement within 15 days of receiving the tenant's list.
If you collect last month's rent in advance, it earns 5% annual interest (or the bank rate, if lower) on the same annual-payment schedule as the security deposit — a separate obligation landlords often overlook because the funds don't have to sit in escrow.
When a property is sold or transferred, the new owner (successor in interest) becomes liable for the deposit and all of §15B's obligations — whether or not the seller actually handed over the deposit funds.
Commingling the deposit forfeits the right to retain it — the tenant can demand its immediate return — and failing to properly escrow is one of the violations that triggers treble damages plus interest, costs, and attorney's fees.
The landlord forfeits the right to keep any portion of the deposit — even for legitimate damage — and becomes exposed to treble damages, 5% interest, court costs, and attorney's fees.
The deduction is invalid: damage deductions require an itemized list sworn under the pains and penalties of perjury with written evidence of actual or estimated repair costs. An unsupported deduction is treated as a failure to return the deposit, with the same treble-damages exposure.
The tenant is entitled to the unpaid interest and may deduct it from the next rent payment if it isn't paid within 30 days of the tenancy anniversary. Unpaid interest also accrues as a liability you must settle, with interest, at move-out.
Massachusetts limits move-in charges to exactly four items (first month, last month, security deposit up to one month, lock-and-key cost). Amounts collected beyond those are unlawful and must be returned.
At most one month's rent. M.G.L. c. 186, §15B(1)(b) limits all move-in charges to first month's rent, last month's rent, a security deposit of up to one month's rent, and the cost of a new lock and key — pet deposits and move-in fees are not on that list and can't be charged.
Yes. A deposit held one year or longer earns 5% per year, or the lesser rate the bank actually pays, under §15B(3)(b). Interest must be paid or credited annually on the tenancy anniversary, and if it isn't paid within 30 days the tenant may deduct it from rent. Last month's rent collected in advance earns interest on the same terms.
30 days after the tenancy ends. Lawful deductions (unpaid rent, agreed tax increases, damage beyond reasonable wear and tear) require an itemized statement sworn under the pains and penalties of perjury with written cost documentation. Missing the 30-day window forfeits the right to keep any portion of the deposit.
Yes — in a separate, interest-bearing escrow account in a Massachusetts bank, protected from the landlord's creditors (§15B(3)(a)). Within 30 days of receiving the deposit, the landlord must give the tenant a receipt with the bank's name and location, the amount, and the account number.
For the core violations — failing to escrow the deposit properly, failing to return it within 30 days, or failing to provide the sworn itemized statement — §15B(7) entitles the tenant to three times the deposit (treble damages) plus 5% interest, court costs, and reasonable attorney's fees.
No. §15B(1)(b) is an exclusive list: first month's rent, last month's rent, a security deposit up to one month's rent, and the lock-and-key cost. A pet deposit, move-in fee, or any other upfront charge by the landlord falls outside that list and is unlawful.
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 10, 2026.
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