Do landlords have to pay interest on security deposits in Massachusetts?

Landlords in Massachusetts must also pay tenants 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 will not accrue for the last month for which rent was paid.

What is the MA law governing the security deposit?

In Massachusetts, a landlord cannot charge a tenant for more than one month’s rent as a security deposit. In addition to requiring first month’s rent and the security deposit prior to move-in, a Massachusetts landlord may also request last month’s rent and payment for the purchase and installation of a lock and key.

Where does a landlord have to hold a security deposit in Massachusetts?

Therefore, a landlord is required to keep a tenant’s security deposit in a separate, interest-bearing bank account in Massachusetts. Each account must also be clearly identified as containing funds that don’t belong to the landlord and are being held in trust (escrow) for the tenant.

Can a landlord keep a tenant’s security deposit?

Therefore, a landlord must keep a tenant’s security deposit in a separate, interest-bearing bank account in Massachusetts. The landlord must also identify to the bank and the tenant that the accounts have funds that don’t belong to the landlord and are being held in trust (escrow) for the tenant.

Do you need a receipt for a security deposit in Massachusetts?

Massachusetts landlords who want to take a security deposit must issue a security deposit receipt. This receipt serves two important purposes. First, it tells the renters where they can get their money if, heavens forbid, you should become incapacitated or unable to return their deposit.

When do you have to give a tenant a receipt for security deposit?

A receipt must be given to the tenant for their payment within 30 days of the landlord receiving the security deposit. The receipt must list: a statement indicating that the tenant is entitled to all interest received from the bank where the deposit has been held, if they live in the apartment for at least 1 year.

Where does a landlord have to deposit a security deposit in Massachusetts?

The landlord must hold the security deposit in a separate, interest-bearing account in a Massachusetts bank. A receipt must be given to the tenant for their payment within 30 days of the landlord receiving the security deposit. The receipt must list:

How long does it take to get security deposit back in Massachusetts?

Massachusetts landlords can demand a maximum of one month’s rent as security deposit from which unpaid rent and water bills, unpaid real estate tax increase and cost of damage to the unit may be deducted. It must be returned within 30 days.