Massachusetts Security Deposit Law

Maximum deposit

Landlords may collect a security deposit of no more than one month's rent, and up front may charge only first month's rent, last month's rent, that deposit and the cost of a new lock and key (M.G.L. c. 186, § 15B(1)(b)). (M.G.L. c. 186, § 15B(1)(b), (d))

Security deposit up to the first month's rent (plus first and last month's rent and lock/key cost may be collected up front)

Return deadline

Landlords must return the deposit, with interest and less lawful deductions, within 30 days after a tenancy at will ends or the written lease term ends (M.G.L. c. 186, § 15B(4)). (M.G.L. c. 186, § 15B(4), (6)(e))

Itemized statement of deductions

To deduct for damage, the landlord must give the tenant within 30 days a sworn, itemized list of damages with written evidence of repair costs such as estimates or receipts (M.G.L. c. 186, § 15B(4)(iii)). (M.G.L. c. 186, § 15B(4)(iii), (6)(b))

Interest on the deposit

Landlords must hold the deposit in a separate interest-bearing Massachusetts bank account and pay the tenant 5% a year, or the lower rate the bank paid, each year and at the end of the tenancy (M.G.L. c. 186, § 15B(3)). (M.G.L. c. 186, § 15B(2)(a), (3))

5% a year or the lesser rate the bank actually paid, paid each year of the tenancy (deposit held one year or more) and accrued interest within 30 days of termination; deposit must be in a separate interest-bearing Massachusetts bank account. Last month's rent paid in advance also earns 5% interest.

Penalty for wrongful withholding

A landlord who fails to escrow the deposit or return it within 30 days owes three times the amount due plus 5% interest, costs and attorney's fees (M.G.L. c. 186, § 15B(6)-(7)). (M.G.L. c. 186, § 15B(6)-(7))

Where the deposit is held

A Massachusetts landlord must keep the deposit in a separate, interest-bearing account at a bank located in Massachusetts and may never commingle it with the landlord's own assets (M.G.L. c. 186, § 15B(1)(e), (3)(a)). (M.G.L. c. 186, § 15B(1)(e), (3)(a), (6)(a), (7))

The account must place the money beyond the reach of the landlord's creditors (including a foreclosing mortgagee or bankruptcy trustee) and be transferable to a new owner. Failing to deposit it this way entitles the tenant to immediate return of the deposit, forfeits any right to deduct, and triggers treble damages (§ 15B(3)(a), (6)(a), (7)).

Receipt or written notice of the deposit

Massachusetts requires two deposit receipts: a signed one when the deposit is paid, and a second within 30 days naming the Massachusetts bank, account number and amount (M.G.L. c. 186, § 15B(2)(b), (3)(a)). (M.G.L. c. 186, § 15B(2)(a)-(b), (3)(a))

The first receipt, signed by whoever takes the money, must show the amount, date, recipient (and the lessor if paid to an agent) and a description of the unit. The second must show the bank's name and location plus the deposit amount and account number; missing it entitles the tenant to immediate return of the deposit. A separate receipt is required for prepaid last month's rent (§ 15B(2)(a)).

Move-in condition checklist

A landlord who takes a deposit must give the tenant a signed statement of the unit's condition within 10 days after the tenancy starts or the deposit is paid, whichever is later (M.G.L. c. 186, § 15B(2)(c)). (M.G.L. c. 186, § 15B(2)(c), (4))

The statement must list existing damage, including certified or adjudicated sanitary/building code violations, and carry a mandated bold-type notice. The tenant has 15 days to return it or attach a list of other damage, and the landlord must answer that list within 15 days. Damage listed there cannot later be deducted from the deposit (§ 15B(4)).

Pet deposits

Massachusetts landlords cannot charge a separate up-front pet fee or a pet deposit beyond the one-month security-deposit cap (M.G.L. c. 186, § 15B(1)(b)). (M.G.L. c. 186, § 15B(1)(b))

Because § 15B(1)(b) limits up-front payments to first and last month's rent, one deposit capped at a month's rent, and a lock-and-key cost, any pet deposit must fit inside the single one-month deposit. The AG reads the same rule as barring one-time pet fees, while allowing higher monthly rent for pets if disclosed in ads.

Nonrefundable fees

Massachusetts bans nonrefundable move-in charges such as application, cleaning, amenity or pet fees by capping what a landlord may collect at or before move-in (M.G.L. c. 186, § 15B(1)(b), (4), (8)). (M.G.L. c. 186, § 15B(1)(b), (4), (8))

Up-front charges are limited to first month's rent, last month's rent, a deposit of up to one month's rent and the cost of a new lock and key; since Aug. 1, 2025 the limit also binds the landlord's agent (broker fees). Deposits may be applied only to the deductions listed in § 15B(4), and any lease term conflicting with § 15B is void (§ 15B(8)).

Small-landlord exemptions

Massachusetts' deposit law does not apply to vacation or recreational rentals lasting 100 days or less, but it covers every other residential landlord regardless of size (M.G.L. c. 186, § 15B(9)). (M.G.L. c. 186, § 15B(9))

The exemption is for vacation or recreational rentals of 100 days or less. There is no exemption based on the number of units or owner-occupancy.

Deposit alternatives and installments

Massachusetts lets the state housing office (EOHLC) write rules allowing an optional fee in place of a security deposit, capped at one month's rent in total, but the option exists only once those regulations are issued (M.G.L. c. 186, § 15B(1)(b)(iii)). (M.G.L. c. 186, § 15B(1)(b)(iii), St. 2024, c. 150, § 50 (Affordable Homes Act, H.4977))

Any regulations must keep the fee optional for both sides, let the tenant choose a full deposit instead, cap total fees (plus any deposit) at one month's rent, require written disclosure if the fee is nonrefundable, require the option to be offered to every approved applicant without regard to income, credit score or protected traits, and let the tenant opt out by paying the deposit. EOHLC must consult the Attorney General first.