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Massachusetts Security Deposit Laws

Massachusetts Security Deposit Limit

A maximum equivalent of one month’s rent may be charged for a security deposit.

At the time of receiving a security deposit, landlord must furnish a receipt indicating the amount of the deposit; the name of the person receiving it, and, if received by a property manager, the name of the lessor for whom the security deposit is received; the date on which it is received; and a description of the premises leased or rented. The receipt must be signed by the person receiving the security deposit. Within 30 days of receiving security deposit, landlord must disclose the name and location of the bank in which the security deposit has been deposited, and the amount and account number of the deposit.

Deadline for Returning Security Deposit

After the tenant moves out and returns the keys, the deposit must be returned within 30 days. Tenants have the right to receive 5% interest on the security deposit per year, or the amount of interest paid by the bank (the bank must be in Massachusetts). Interest should be paid yearly and within 30 days of the termination date. Interest does not accrue for the last month rent was paid.