Overview
Massachusetts has among the strictest security deposit laws in the United States. The state caps deposits at one month's rent and imposes detailed requirements for how landlords must hold, document, and return security deposits. Violations of these rules can result in the landlord forfeiting the right to retain any portion of the deposit and being liable for treble damages.
This guide covers everything landlords and tenants need to know about security deposits in Massachusetts.
Deposit Limits
Massachusetts law limits security deposits to a maximum of 1 month's rent. In addition, at the time of move-in, a landlord may only collect:
- First month's rent
- Last month's rent
- Security deposit (1 month's rent maximum)
- Cost of a new lock and key
No other fees or charges may be collected at move-in.
Strict Handling Requirements
- Landlords must hold the deposit in a separate, interest-bearing account at a Massachusetts bank
- The landlord must provide the tenant with a receipt within 30 days, including the amount, the bank name and address, and the account number
- Landlords must pay 5% annual interest on the deposit (or the actual bank interest rate, whichever is less) to the tenant each year or deduct it from the rent
- The landlord must provide a statement of condition describing the unit's condition at move-in within 10 days of receiving the deposit
Failure to comply with any of these requirements may result in the landlord being required to return the entire deposit to the tenant, regardless of any damages.
cite: Mass. Gen. Laws ch. 186, § 15B(3)
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out (only if the tenant did not provide last month's rent)
- Damage beyond normal wear and tear: Repairs for tenant-caused damage that exceeds ordinary wear
- Unpaid tax escalation increases: If applicable under the lease
- Unpaid water charges: If the tenant is responsible under the lease
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Damage caused by pets or negligence
Return Timeline
Landlords must return the security deposit within 30 days of the tenant vacating the unit or the termination of the tenancy, whichever occurs later. The return must include:
- The remaining deposit amount (if any deductions were made), plus accrued interest
- An itemized written statement listing each deduction, the nature of the damage, and the actual or estimated repair cost
- Sworn statements or estimates from repair persons for any deductions claimed
If the landlord fails to return the deposit or provide the required documentation within 30 days, the tenant may be entitled to recover up to three times the deposit amount (treble damages) plus interest, court costs, and reasonable attorney's fees.
cite: Mass. Gen. Laws ch. 186, § 15B(4)
Pre-Move-Out Inspection
Massachusetts law does not specifically require landlords to offer a pre-move-out inspection. However, the statement of condition provided at move-in serves as the baseline for determining whether damage occurred during the tenancy.
If the landlord fails to provide a statement of condition within 10 days of receiving the deposit, the landlord forfeits the right to retain any portion of the deposit for damages.
Tenants are encouraged to:
- Review and sign the statement of condition at move-in, noting any existing damage
- Document the condition of the unit with photos at move-in and move-out
- Request a walk-through with the landlord before turning over the keys
- Keep copies of all communication regarding the deposit
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit with an itemized explanation
- File a claim in Small Claims Court (up to $7,000 in Massachusetts) or Housing Court
- Contact the local tenant advocacy organization or Massachusetts Legal Aid for assistance
If the landlord acts in bad faith or fails to comply with the strict handling and return requirements, the court may award the tenant up to three times the security deposit amount (treble damages) plus 5% interest from the date of the deposit, court costs, and reasonable attorney's fees. Massachusetts courts strictly enforce these provisions, and even minor procedural violations by the landlord can result in the full deposit being returned to the tenant.