Massachusetts Security Deposit Laws for Landlords

Massachusetts security deposits have distinct rules for collection, documentation, holding, interest and return. Use this guide to organize the steps, then check the official requirements for your tenancy.

Sources checked October 19, 2026. This is general information, not legal advice or a substitute for required forms. Start with G.L. c. 186, § 15B and the state deposit guidance.

1. Collection and receipts

A deposit cannot exceed the first month’s rent. Give a signed receipt when accepting it, identifying the amount, date, recipient and premises. Last month’s rent is a separate payment with separate receipt and interest rules. Keep the lease and payment records together.

2. Document the property’s condition

Provide the separate condition statement upon receipt of the deposit or within ten days after the tenancy starts, whichever is later. Use the statute’s required notice and response procedure; photographs supplement the paperwork rather than replace it. The state condition-statement resource explains this step.

3. Separate account and interest

Hold deposit funds in a separate interest-bearing Massachusetts bank account. Within thirty days of receiving them, provide the bank name/location, account number and amount. Keep the annual statements and interest records. The statutory interest provisions address the tenancy’s duration, the bank’s actual earnings and payment or rent-credit notices; consult subsection (3)(b) for the applicable calculation.

4. Permitted deductions and normal wear

Compare move-in records with the final inspection. Ordinary wear is excluded from damage deductions. Do not assume every unpaid charge is deductible: the statute limits the categories and requires specific supporting paperwork for damage. Preserve estimates, invoices and receipts, and have questionable deductions reviewed before withholding funds.

5. Return and disputes

Section 15B sets a thirty-day return period tied to termination of occupancy for a tenancy at will or the tenancy’s end under a valid written lease. Return the balance due and comply with the interest and itemization requirements. Ask counsel to confirm the trigger date when move-out and lease-end dates differ.

Consequences depend on the violation and facts. Some violations can result in multiple damages and legal costs. A generic checklist cannot determine a particular claim; seek qualified Massachusetts counsel if there is a missed deadline or dispute.

Keep an organized deposit file

• Lease, signed receipts and bank notices.
• Condition statements, responses and dated inspection photos.
• Interest calculations, statements and payment records.
• Return calculation, supporting documents and delivery records.

For wider context, read our Massachusetts tenant and landlord rights guide. To discuss management services, request a proposal; your agreement defines the service scope.

Requirements and outcomes depend on the tenancy and facts. This article does not guarantee compliance or replace legal advice.