Overview
Massachusetts has some of the most detailed and tenant-friendly security deposit laws in the country, governed by the Massachusetts General Laws Chapter 186, § 15B. These regulations strictly control how deposits are collected, stored, and returned, with harsh penalties for violations.
Landlords must follow strict documentation and accounting procedures. Any misstep, even a technical one, can result in the forfeiture of the deposit and additional damages.
This guide covers:
How much landlords can charge
Storage and interest requirements
Rules for documentation and returns
Penalties for non-compliance
Related Statute: Mass. Gen. Laws ch. 186, § 15B
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Landlords may charge no more than one month’s rent as a security deposit.
Storage requirements: Deposits must be held in a separate, interest-bearing account in a Massachusetts bank. The account must not be commingled with the landlord’s personal or business funds.
Written disclosure: Within 30 days of receiving the deposit, landlords must provide a receipt, the name and address of the bank, and the account number.
Law Reference: Mass. Gen. Laws ch. 186, § 15B(1)(b)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 30 days of the end of the tenancy.
Permissible deductions: Landlords may deduct for unpaid rent, unpaid real estate taxes (if required under the lease), and damages beyond normal wear and tear.
Itemized statement required: Deductions must be documented with an itemized list and supporting evidence (e.g., receipts or estimates). This must be provided within the 30-day deadline.
Law Reference: Mass. Gen. Laws ch. 186, § 15B(4)
3. Interest Payments & Documentation Requirements
Interest payments: Landlords must pay tenants annual interest of 5% or the actual interest earned on the deposit, whichever is less. Interest must be paid each year and again when the deposit is returned.
Move-in condition statement: Within 10 days of receiving the deposit, landlords must provide a detailed written statement of the unit’s condition. Tenants have 15 days to contest or add to it.
Failure to comply: Omissions in providing documentation or mishandling the deposit can result in the landlord forfeiting the entire deposit.
Law Reference: Mass. Gen. Laws ch. 186, § 15B(2)(b)-(d), (3)(a)
4. Penalties for Mishandling Security Deposits
Strict liability: Landlords who fail to follow the law precisely may be required to return the full deposit, regardless of damage caused by the tenant.
Triple damages: If a court finds the landlord acted willfully or in bad faith, tenants may recover up to three times the deposit amount, plus court costs and attorney fees.
Law Reference: Mass. Gen. Laws ch. 186, § 15B(6)(a)
Key Takeaways
Landlords may not charge more than one month’s rent as a deposit.
Deposits must be held in a separate, interest-bearing Massachusetts bank account with full disclosure to the tenant.
Deposits must be returned within 30 days, along with interest and a detailed list of any deductions.
Failure to comply—even on technicalities—can result in full forfeiture or triple damages.
By strictly following Massachusetts deposit laws, landlords can avoid costly penalties, and tenants can be confident their deposits are protected.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
