Massachusetts security deposit law

A security deposit may not be more than the first month's rent. At or before the start of a tenancy, the only amounts a landlord or the landlord's agent may require the tenant to pay them are the first month's rent, the last month's rent at the same rate, a security deposit equal to the first month's rent, and the purchase and installation cost of a key and lock. No other move-in charge is allowed.

Mass. G.L. c. 186, § 15B(1)(b) Mass. G.L. c. 186, § 15B(1)(d)

• The deposit is allowed only if it is held in a separate account as the law requires and the tenant receives the statement of condition. Mass. G.L. c. 186, § 15B(1)(b)(iii)
• After the tenancy begins, a landlord or a later owner may not demand rent in advance beyond the current month's rent, or a deposit larger than the law allows. Mass. G.L. c. 186, § 15B(1)(d)
• Since August 1, 2025, the limit also covers the landlord's agent: neither the landlord nor the landlord's agent may require the tenant to pay them anything beyond these amounts, so a broker working for the landlord cannot charge the tenant a fee at or before move-in. Mass. G.L. c. 186, § 15B(1)(b)
• The statute lets the state housing office adopt rules for an optional fee in place of a deposit. Any such fee, with any deposit, may never total more than one month's rent. Whether such rules have been adopted was not checked for this page. Mass. G.L. c. 186, § 15B(1)(b)(iii)
• A lease term that conflicts with the deposit law, or a tenant's waiver of it, is void. Mass. G.L. c. 186, § 15B(8)
• The deposit rules do not apply to a vacation or recreational rental of 100 days or less. Mass. G.L. c. 186, § 15B(9)

Return the deposit, or the balance, with any interest, within 30 days after a tenancy at will ends or after the end of the tenancy stated in a written lease. You may deduct only unpaid rent or water charges not lawfully withheld, a real estate tax increase owed under a tax escalation clause that meets the statute, and a reasonable amount to repair damage caused by the tenant or people under the tenant's control, never reasonable wear and tear. No other deduction is allowed.

Mass. G.L. c. 186, § 15B(4) Mass. G.L. c. 186, § 15B(6) Mass. G.L. c. 186, § 15B(7)

• To deduct for damage, give the tenant within the 30 days an itemized list of damages sworn under the pains and penalties of perjury, describing the damage and repairs in precise detail, with written evidence of the cost such as estimates, bills, invoices or receipts. Mass. G.L. c. 186, § 15B(4)(iii)
• You may not deduct for damage listed on the statement of condition, or on a tenant's list you signed, unless you repaired it afterward and can prove the new damage is unrelated and was caused by the tenant. Mass. G.L. c. 186, § 15B(4)
• You lose the right to keep any part of the deposit, and to counterclaim for damage in the tenant's suit, if you did not hold it in a proper account, did not send the itemized list on time, tried to enforce a lease term that conflicts with the deposit law, failed the rules on transfer to a new owner, or did not return the balance and interest within 30 days. Mass. G.L. c. 186, § 15B(6)
• Failing to hold the deposit as required, failing the transfer rules, or failing to return it on time costs three times the deposit or balance owed, plus 5 percent interest from the due date, court costs and reasonable attorney's fees. Mass. G.L. c. 186, § 15B(7)
• When you sell or otherwise transfer the property, transfer the deposit and interest to the new owner. The new owner must notify the tenant in writing within 45 days, with the owner's and any agent's name, business address and business telephone number. A mortgage is not a transfer. Mass. G.L. c. 186, § 15B(5)
• Keep a record of each deposit, damage, repairs and their cost, with copies of receipts and statements of condition, for two years after the tenancy ends, and let the tenant inspect it on request. Wrongly refusing inspection entitles the tenant to the immediate return of the deposit with interest. Mass. G.L. c. 186, § 15B(2)(d)

Hold the deposit in a separate, interest-bearing account in a bank located in Massachusetts, on terms that keep it beyond the reach of your creditors and let it pass to a later owner. Give the tenant a signed receipt when you take the deposit, and within 30 days a second receipt naming the bank and its location, the amount and the account number. Missing the account or the 30-day receipt entitles the tenant to the immediate return of the deposit.

Mass. G.L. c. 186, § 15B(3)(a) Mass. G.L. c. 186, § 15B(2)(b) Mass. G.L. c. 186, § 15B(3)(b)

• The first receipt shows the amount, the date, the name of the person receiving it (and the landlord's name if an agent takes it) and a description of the home, and is signed by the person receiving it. Mass. G.L. c. 186, § 15B(2)(b)
• The deposit remains the tenant's property and may not be mixed with the landlord's assets. Mass. G.L. c. 186, § 15B(1)(e)
• If you hold the deposit for a year or more, pay interest from the first day at 5 percent a year, or the lower amount the bank paid. At the end of each year of the tenancy send a statement with the bank's name and address, the amount, the account number and the interest owed, and pay the interest or tell the tenant to deduct it from the next rent. If the tenancy ends before an anniversary, pay the accrued interest within 30 days. Mass. G.L. c. 186, § 15B(3)(b)
• If a tenant does not receive the interest or the notice within 30 days after a year ends, the tenant may deduct the interest from the next rent. Mass. G.L. c. 186, § 15B(3)(b)
• Last month's rent collected in advance also needs a receipt at the time of payment, earns interest at 5 percent a year or the lower bank amount from the first day (none for the last month itself), and is paid or credited each year. Failing to pay that interest within 30 days after the tenancy ends costs three times the interest, plus costs and fees. Mass. G.L. c. 186, § 15B(2)(a)

A landlord who takes a security deposit must give the tenant a separate written statement of the home's present condition, when the deposit is received or within ten days after the tenancy begins, whichever is later. It lists any damage then existing, including sanitary or building code violations certified by a board of health or building official or found by a court, is signed by the landlord or agent, and carries the statutory notice in twelve-point bold-face type at the top of the first page.

Mass. G.L. c. 186, § 15B(2)(c)

• The notice tells the tenant to sign the statement if it is correct, or attach a signed list of damage, and return it within fifteen days after receiving it or after moving in, whichever is later. Mass. G.L. c. 186, § 15B(2)(c)
• If the tenant returns a list of damage, the landlord has fifteen days to return a copy with a signed agreement or a clear statement of disagreement. Mass. G.L. c. 186, § 15B(2)(c)
• Damage listed on the statement cannot later be deducted from the deposit, unless you repaired it and can prove the new damage is unrelated and was caused by the tenant. Mass. G.L. c. 186, § 15B(4)
• A deposit may be required only if the tenant is given the statement. Mass. G.L. c. 186, § 15B(1)(b)(iii)