Chapter 3

Security Deposits and

Last Month's Rent
Legal Tactics: Tenants' Rights in Massachusetts
Eighth Edition, April 2018

Protect Your Security Deposit - Pullout .................................... 39

How Much Can a Landlord Request .......................................... 41

1. Security Deposit
2. Last Month's Rent
2. Illegal Fees
3. Discrimination
4. Illegal Lease Clauses
5. Increases in Deposits

Your Landlord's Responsibilities .............................................. 42

1. Written Receipts
6. Statement of Condition
7. Separate Bank Account
8. Payment of Interest
9. Records of Deposits and Repairs
10. Returning Your Security Deposit
11. Following the Law

Getting Your Security Deposit Back ......................................... 47

1. What Can My Security Deposit Be Used For
2. When Can I Get My Security Deposit Back
3. How Do I Protect My Security Deposit Before I Move Out
4. How Do I Get My Security Deposit Back?

New Owners ............................................................................. 50

Subsidized Housing .................................................................. 51

1. Section 8 Housing Voucher
2. Section 8 Multifamily Housing (No Voucher)
3. Massachusetts Rental Housing Assistance
4. Public Housing

Chapter 3: Security Deposit ▲ 37

 Help with Deposits ................................................................... 52
1. Residential Assistance for Families in Transition (RAFT)
2. HomeBase
3. Private Programs

38 ▲ Chapter 3: Security Deposits

 Pullout 3
Protect Your Security Deposit
Tenants’ Rights in Massachusetts

How Much Can a Subsidized Housing

Landlord Charge The amount a landlord can charge for a
The law says landlords: security deposit depends on the subsidy you
have.
 May only charge for the first and last
month’s rent, a new lock and key, and a If you have a Section 8 voucher under the
security deposit when you first move in. Housing Choice Voucher Program or the Project-
Based Voucher program, you can be required to
 May not ask for a security deposit that is pay up to one total month’s rent. That is,
more than your 1st month’s rent. your share of the rent plus the housing
 May not charge other fees, like pet fees, agency’s share. If one total month’s rent is
cleaning fees, and application fees. $1,000/month, a landlord could charge you
$1,000 for a security deposit.
If you have "project-based" Section 8
Protect Yourself assistance in privately owned multifamily
housing, the best thing to do is to look at the
Before You Move In lease. Project-based Section 8 assistance is not
 Get a receipt for any money you pay a voucher.
the landlord when you move in. If they If you have a voucher funded by the
do not give you a receipt, use Rent Massachusetts Rental Voucher Program or
Receipt (Form 2). the Alternative Housing Voucher Program, a
 Only pay in cash if the landlord can landlord may charge you a security deposit up
give you a receipt right away. to one total month’s rent.

 Start a folder and keep receipts and Your Landlord’s

other documents related to your new
apartment in a safe place.
Responsibilities
 List and photograph anything that is Landlords must:
broken or damaged. Date your photos  Keep your security deposit in a bank
and keep them in your folder. account, separate from their own money.
 If the landlord does not give you a  Give you a receipt within 30 days of
Statement of Conditions, when you receiving your security deposit. The
move in, send Statement of receipt must tell you what bank your
Condition (Form 3) to your landlord security deposit is in.
with the list of anything broken or
damaged.  Pay you interest on your security deposit
and last month’s rent once a year. If they

Chapter 3: Security Deposit ▲ 39

 do not, you can subtract that amount from
your next month’s rent.
Getting a Security
Deposit Back
Landlords who disobey any part of this law
must return all of your security deposit if you If you left your apartment in the same
ask for it, even if you still live there. condition as you found it, the landlord must
return your security deposit balance, with
Protect Yourself interest, within 30 days after you move out.
While You Are Renting If the landlord does not return your security
deposit, send her a letter formally asking her
If your landlord does not pay you interest
to return 100% of your deposit. You can use
once a year on your security deposit and last
Security Deposit Demand Letter for
month’s rent, you can subtract the amount
Tenants Moving Out (Form 6).
from your next month’s rent.
If the landlord still refuses to return your
What Can a Security security deposit, you can sue in Small Claims
Deposit Be Used For court. She may have to pay you 3 times the
deposit. Learn more at:
After you move out, a landlord may only use www.mass.gov/courts/selfhelp/small-claims/
your security deposit for unpaid rent or to
repair damages you or your guests caused. New Owners
The damage must be more than “reasonable
wear and tear.” Landlords are not allowed to You should not lose your security deposit or
use the security deposit for routine painting, last month’s rent, because of a foreclosure, a
sale to a new owner or a new management
cleaning or small repairs.
company.
Protect Yourself Keep track of who the new owner is.
When You Move Out If the new owner asks you to pay another
Move your things out, clean the apartment, security deposit or last month’s rent – Say,
and fix anything you can. “No!”

Inspect the apartment with your landlord and A new owner has 45 days to send you a notice
make a list of anything your landlord says about your security deposit and last month’s
needs repair. You can also take photos. rent. If 45 days pass and you have not heard
from the new owner, write your old landlord
Make a copy of the list. Keep one and give and ask her to return your money, plus
one to the landlord. interest.
Return the keys and give the landlord your If the old landlord does not return your
forwarding address so she can send you the money, you can sue her for 3 times the
security deposit. security deposit that you gave her.

MassLegalHelp.org/Security-
i Deposits
Legal Tactics: Tenants Rights
in Massachusetts May 2017

40 ▲ Chapter 3: Security Deposits

 Chapter 3
Security Deposits and
Last Month's Rent
by Maureen McDonagh Italicized words are in the Glossary

The Massachusetts security deposit law protects Example:

both you and your landlord. If the 1st month’s rent is $1,000, a landlord can
charge:
Once you agree to rent a place, your landlord can
charge you a security deposit to protect her $1,000 security deposit
property from any damage you might cause. She $1,000 1st month’s rent
can also charge you last month’s rent to protect $1,000 last month’s rent
her if you move out before paying it. + $........ the cost of lock and key
= Total a landlord can charge
The security deposit law also protects you and
landlords must follow the law.1 This chapter 1. Security Deposit
explains your rights if your landlord charges you
a security deposit, last month’s rent or both. A security deposit and last month's rent are not
the same.
The most important thing you can do to protect
yourself is to get written receipts from your A security deposit is money you pay a landlord
landlord for the security deposit and last month’s to protect her in case you damage the apartment.
rent. Only give your landlord cash if she But a security deposit is your money. If you do
gives you a receipt right away. not damage the property, you should get your
deposit back when you leave.
How Much Can
Your landlord must keep your security deposit in
a Landlord Request a bank account in Massachusetts. The account
must be separate from the account she keeps her
When you first move in, your landlord may only own money in. And every year she must pay you
charge you: the interest it earns.
 a security deposit,
2. Last Month's Rent
 1st month's rent,
Last month's rent protects your landlord in
 last month's rent, and advance if you leave and do not pay rent the last
month you are there.
 the cost of a new lock and key.2
Your landlord does not have to keep your last
A security deposit or a last month’s rent cannot month's rent money in a separate bank account.
be more than the amount of your 1st month’s But she does have to pay you interest on it every
rent. year.

Chapter 3: Security Deposit ▲ 41

If you pay last month's rent in advance, do not 3. Discrimination
expect to get this money back when you move
out. It will pay for your last month. A landlord that charges a fee or security deposit
to some groups of people and does not charge
If you do not pay last month’s rent in advance, the same fee or deposit to others may be
you must pay for your last month of rent even if breaking the discrimination laws. It is illegal for a
a landlord holds a security deposit. landlord to discriminate against groups the law
protects, including: single parents, people of
2. Illegal Fees color, people on welfare, people with small
children, people with disabilities, and people with
It is against the law for a landlord to charge Section 8 or other rental assistance. If the
tenants any other “moving in” fees, like: landlord tries to discriminate against you, see
Chapter 7: Discrimination.
 application or holding deposits,
 amenity or community fees, 4. Illegal Lease Clauses
 up-front pet fees,
Your landlord cannot take away your rights
 cleaning fees, or under the security deposit law by using a written
 credit checks or application fees.3 lease that conflicts with the law. “Your landlord
can keep your security deposit if you rent the
It is also illegal for a landlord to charge you a apartment for less than 6 months,” is an example
finder’s fee. But if a real estate broker – not the of an illegal clause. Your landlord cannot do
landlord – helps you find your rental unit, that this.
person may charge you a “finder's or broker’s
fee.” A rental agent can charge a finder's fee only If your landlord has you sign a lease with a clause
if she is a licensed real estate broker. The broker that conflicts with the security deposit law, you
must provide a written notice to prospective have the right to get your security deposit back
tenants with information about the fee and as soon you ask for it. See Getting Back Your
whether or not it is paid if a tenancy is not Security Deposit.5
created. 4 To find out if a rental agent is a
licensed real estate broker, go to the internet at: 5. Increases in Deposits
www.state.ma.us/reg/boards/re/ and click on
"Check a License." If your rent increases after you move in, your
landlord may not increase your security deposit.
If a landlord tries to charge you an illegal fee: Your security deposit is limited to the amount of
your very first month's rent.6
 You can refuse to pay it.
 You do not have to rent from that landlord. But if the rent goes up and you agree to pay the
Find a landlord who follows the law. higher rent, your landlord can ask you to pay
more for the last month’s rent. So, your last
 If you do rent from that landlord, get a month’s rent equals the new higher rent.
written, itemized receipt for everything you
pay. Make sure the receipt, includes the extra
fees and what they are for. After you move Your Landlord's
in, subtract the amount you paid in illegal Responsibilities
fees from your rent. Write the landlord a
letter that says you have subtracted the If your landlord charges you a security deposit,
illegal fees from the rent. Include the last month’s rent or both, she must:
itemized receipt.

42 ▲ Chapter 3: Security Deposits

1. Give you written receipts. Each receipt or statement about your security
deposit or last month’s rent must include:
2. Give you a statement that describes the
condition of your apartment, if she takes a 1st Receipt Security Last
security deposit.7 Deposit Month's
for security Rent
3. Keep your security deposit in a separate bank deposit or last
account. month’s rent
Amount of money
4. Pay you interest every year on both your received  
security deposit and last month’s rent.8 Date money was received  
5. Keep records of security deposits and What the money is for  
repairs.9 Name of landlord  
Name of person you give
6. Return your security deposit to you at the the money to if different  
end of your tenancy if there is no damage from landlord
and your rent is paid. Statement that you are
owed interest on the  
7. Return your security deposit to you if she money
fails to follow the security deposit law. Statement that you should
give a forwarding address
so landlord can send you 
1. Written Receipts interest when you move

The most important step you can take when you 2nd Receipt Security Last
move in is to get a complete receipt from your Deposit Month's
landlord that spells out all the money you gave within 30 days Rent
her and what it is for. for security
deposit in a
Only give your landlord cash if she gives you Mass bank
a receipt right away. If the landlord refuses to
Location and name of
give you a written receipt, use Security Deposit bank where your money is  No receipt
Receipt and Last Month’s Receipt (Form 4). required
Account number of the
fund where your money is 
You should get 3 kinds of receipts from your
landlord. They must all be written.
3rd Receipt or Security Last
Deposit Month's
 1st Receipt: She must give you a written Statement at the Rent
receipt when you give her your security end of each year
deposit or last month’s rent.10 for security
 2nd Receipt: She has 30 days to put your
deposit or last
security deposit in a bank and give you a month’s rent
2nd receipt. This receipt must say where Statement of the amount
your security deposit is.11 of interest you are owed  
on your deposit
 3rd Receipt or Statement: Every year she If the landlord does not give you a receipt with
must give you a statement with the amount this information at the right time, you have the
of interest you are owed on your security right to get your security deposit back. See
deposit and last month's rent.12 Getting Your Security Deposit Back.

Chapter 3: Security Deposit ▲ 43

6. Statement of Condition If you do not send it back within 15 days, it
means you agree completely with the landlord’s
As soon as you move in, examine the rental unit Statement.
right away. If anything is not in good condition,
make notes about it and take photos. Make sure If you send your landlord a Statement of
to put a date on your notes and photos. Condition with your own list of problems, your
landlord must return a copy within 15 days. The
If your landlord charged you a security deposit, landlord must say if she agrees or disagrees with
she has 10 days to give you a description of your what you wrote. And she must sign this
rental unit’s condition. This description must be statement too.
in writing. It is called a “Statement of
Condition.” Keep a copy of everything you send the
landlord.
This Statement must list all the existing damage
in your apartment when you move in. It must b. If you do not get
also cover the common areas of the place you a Statement of Condition
are renting. Its purpose is to prevent disputes
If you do not get a Statement of Condition
between you and your landlord when you move
within 10 days of moving and there are serious
out. The statement makes clear the damage
problems in your rental unit, do your own
already there when you moved in. Your landlord
statement.14 You can use Statement of
must also sign this Statement.
Condition (Form 3).
Read the Statement of Condition carefully. Take
Your Statement of Condition is important. It can
time to walk through the apartment with the
prevent the landlord from using your security
Statement. Use Housing Code Checklist
deposit to pay for damage you did not cause.
(Booklet 2) to help you understand what the law
requires. c. Problems after you move in
If a landlord writes on the Statement of If there is a problem with your apartment after
Condition that there are no bad conditions, you move in, let the landlord know right away
make sure this is true. If there are things that are and ask her to repair it.
not in good condition, write them on the
landlord’s Statement so it describes the real For example, if you move in during August, you
condition of the place.13 Add even small defects might not find out that the heating system is
to your list like holes in the walls and windows broken until several months later.
that do not work well. This is to protect you
when you move out. It is OK to call, but also send a letter or email.

You can also use our Statement of Condition Keep a copy of the letter or email so you can
(Form 3) and attach it to the landlord’s always prove that you notified the landlord about
“Statement.” a problem.
a. Send the Statement to the Landlord

You have 15 days after you get the landlord’s

Statement of Condition to send it back. You can:
 Make no changes to the “Statement,” sign it
and send it back.
 Make changes, attach your own statement,
notes and photos, sign it and send it back.

44 ▲ Chapter 3: Security Deposits

7. Separate Bank Account c. Yearly payment

a. Security Deposit After each 12-month rental period, your landlord

must send you a statement that tells you:
A security deposit is your money that the
 The bank, bank address, and account
landlord is holding.15 If your landlord charged
number that holds your security deposit
you a security deposit, she must keep your
and,
security deposit in a bank account in
Massachusetts.16  The interest you are owed on the security
deposit and last month’s rent.
The account must be separate from the
landlord’s money. The name on the account At the same time, the landlord must either:
must make it clear that the money does not
 Give you the interest you are owed, or
belong to the landlord. The bank account must
also be protected from creditors.17  Explain in this statement that you can
subtract the interest from your next rent.21
If a landlord fails to keep your money in a
separate account protected from creditors, you If 30 days pass after the 12 month rental period
have the right to sue your landlord for 3 times and you have not received either the interest or
the amount of your deposit.18 See Getting Back the statement, you may subtract the interest
Your Security Deposit. owed from your next rent payment.22 It is a good
idea to include a letter with your rent payment
b. Last Month’s Rent that explains you are subtracting this interest
from your rent payment.
If your landlord charged you last month’s rent,
she does not have to put it into a separate
account. But once a year she must still pay you How to subtract yearly interest from
interest owed on it. rent payment

8. Payment of Interest You pay a $1,000 security deposit and a $1,000

last month's rent payment. The interest on the
If your landlord charged you a security deposit account is 1%,
or last month’s rent, she must pay you the Your landlord must pay you a total of $20 in
interest that the money earns. interest for every year that you rent.
a. Amount
If the landlord does not pay you directly, you
The landlord must give you all the interest your may subtract this $20 from your rent payment.
security deposit and last month’s rent earn if the  If Interest is 1% on Your Security
bank pays less than 5% interest.19 Deposit and Last Month's Rent
b. When $1,000 Security Deposit $1,000 Last Month Rent
x .01 Interest x .01 Interest
$ 10 = Amount owed $ 10 = Amount Owed
Your landlord must pay the interest you are
owed on your security deposit and last month’s  Subtract Total Interest Owed
rent: from Your Rent
 Once a year, and $1,000 Rent
- $ 20 Total interest owed tenant on security deposit
 Within 30 days after you move out.20 and last month's rent payment
$ 980 = Amount of next rent check

Chapter 3: Security Deposit ▲ 45

d. Moving out tenancy ends. See When Can I Get My
Security Deposit Back - When your tenancy
If your landlord does not pay you the interest ends.
you are owed on your security deposit within 30
days of the day you move out, or the last day of 11. Following the Law
your lease, you can sue her for 3 times the
amount of the interest owed. Your landlord must follow the security deposit
law. If she does not, she must return your entire
If you win in court, you also have the right to security deposit when you ask for it. The
have the landlord pay your lawyer’s fees and landlord has failed to follow the law if she:
court costs.23 See How to get your security
deposit back.  Does not give you a complete receipt within
30 days of getting your deposit, see Written
9. Records of Deposits Receipts.
and Repairs
 Fails to put the security deposit in a separate
Your landlord must keep security deposit and bank account, see Separate Bank
repair records for all tenants who have moved in Account.28
or out in the last 2 years.24 The records must
show:  Does not let you inspect her records of
deposits and repairs, see Records of
 A detailed description of any damage in an Deposits and Repairs.29
apartment when the landlord took a security
deposit;  Asks you orally or in writing to give up your
security deposit rights.
 When repairs were made; and
 Fails to transfer your security deposit to a
 Receipts and the cost of any repairs. new owner, see New Owners.

Anyone interested in renting has the right to see  Does not give you an itemized list of
these records during normal office hours.25 damages within 30 days after you move out;
or
If you already paid a security deposit and your
landlord refuses to let you see the records, you  Does not return your deposit or any balance
have the right to an immediate refund of your owed you, with interest, within 30 days of
security deposit.26 when you tenancy ends.30 See When Can I
Get My Security Deposit Back - When
10. Returning Your your tenancy ends.
Security Deposit If your landlord does not follow the law, you can
ask her to return your security deposit - even if
If you leave your rental unit in the same you are still living in the apartment. See Security
condition as you found it, the landlord must Deposit Demand Letter (Form 5).
return your entire security deposit. The security
deposit and interest belong to you.

If you have a written lease, a landlord has until

30 days after the last day of your lease to return
the deposit, even if you move out before the
lease ends.27 If you do not have a written lease,
your landlord has until 30 days of when your

46 ▲ Chapter 3: Security Deposits

 c. Using security deposit to for repairs
Getting Your Security after you move out
Deposit Back
If your landlord wants to use your security
deposit for repairs, she has 30 days after you
1. What Can My Security move out to give you a complete list of the
Deposit Be Used For damaged items and the cost to repair them.
a. While you are in the apartment The list must say that she "swears under
penalties of perjury" the list is true and she must
While you are living in the apartment, you and sign it.
your landlord may agree to use your security
deposit to pay for rent or to repair any damage She must also attach written receipts and
you or a guest may cause. Your landlord can only estimates for the repairs.34
use a security deposit in this way if you and she
both agree to it.31 If you both agree, put the 2. When Can I Get My
agreement in writing. Both of you should sign it.
Keep a copy. Security Deposit Back
b. When you move out a. While you are in the apartment

When you move out, your landlord can use your If your landlord fails to follow the security
security deposit to pay for: deposit law while you are renting, you have a
right to ask her to return the security deposit
 Repairs for damage that are not "reasonable right away. See Following the Security Deposit
wear and tear." Law.

 Unpaid rent, unless you legally withheld rent You can ask for the entire security deposit back
for bad conditions. See Chapter 8: Getting if the landlord:
Repairs Made.
 Does not give you a complete receipt within
 Unpaid real estate tax increase, if your 30 days of getting your deposit, see Written
contract requires it.32 See Chapter 5: Rent. Receipts.

Your landlord cannot use your deposit for:  Does not let you inspect her records of
deposits and repairs, see Records of
 Damage that was already there when you Deposits and Repairs.35
moved in.
 Asks you orally, or in writing to give up your
 Reasonable wear and tear, like routine security deposit rights.
painting and cleaning, new locks and keys,
and small carpentry repairs.33 You have a right to ask for 3 times the amount
of your security deposit if the landlord:
 Repair costs that are not documented.
 Does not put your security deposit money
 Phony claims of damage. in a separate account or

 Repair costs that are unreasonably high.  Does not transfer it to a new owner.36

To ask for your deposit back, use the sample

Security Deposit Demand Letter (Form 5).

Chapter 3: Security Deposit ▲ 47

b. When your tenancy ends  Take photos of all of the rooms in case you
need to prove the condition of the
If there is damage, your landlord must give you apartment when you moved out.
a detailed list of damages within 30 days after
your “tenancy ends.”  Ask the landlord to inspect the apartment
with you and to point out any damage she
If there is no damage or unpaid rent, your plans to subtract from your security deposit.
landlord must return the security deposit plus
interest owed within 30 days after your tenancy  Have your Statement of Condition with you
ends.37 in case you need to show the landlord that
the problem existed when you moved in.
Your tenancy ends: See Statement of Condition (Form 3).
 Do not have lease: If you do not have a  If there is any damage that goes beyond
written lease, your tenancy ends the day you “wear and tear,” make a list that you and
move out. And your landlord must return your landlord can sign. You may be able to
your security deposit within 30 days. reach an agreement with the landlord before
you move out.
 Have lease: If you have a written lease,
your tenancy ends when your lease ends. If  If your landlord refuses to inspect the
you move before the lease ends, the apartment, make your own list of any
landlord does not have to return the security damage or improvements. Sign and date it,
deposit until 30 days after the last day of the then mail it to her after you move out.
lease.38 If you move after your lease ends, Remember to put in an address where
the landlord must return the security deposit she can send the security deposit.
30 days after you move out.
4. How Do I Get My Security
c. After you move out
Deposit Back?
After you move out, you have a right to ask your
landlord to return your security deposit if: If your landlord does not return your security
deposit when she should or she fails to follow
 Your landlord does not give you an itemized the law, you can send her a demand letter.
list of damages within 30 days after you
move out, or If you send a demand letter and she still does not
return your security deposit, you can take her to
 Your landlord does not return your deposit court.
or any balance owed you, with interest,
within 30 days of when your a. Demand Letter
tenancy ends.39
You can use a demand letter whenever you have
the right to an immediate return of your deposit,
3. How Do I Protect My even if it is not at the end of your tenancy.40
Security Deposit Before
I Move Out A demand letter gives your landlord a chance to
return your deposit without having to go to
 Give your landlord an address where she court. You can use our Sample Demand
can send the security deposit and any Letters (Form 5 or Form 6)
interest.
Send the letter by certified mail, return receipt
requested. Keep a copy for your records.

48 ▲ Chapter 3: Security Deposits

If your landlord does not respond to your of money you have to pay an attorney to
demand letter for the return of your security represent you.42
deposit, you can take her to court. You can ask
the court for up to 3 times the amount of the If you sue your landlord for your security deposit
deposit, plus interest. If your security deposit and she did not give you a complete list of
was $1,000, she may have to pay you $3,000, plus damages within 30 days of your tenancy ending,
interest, plus your court fees. If you hire a she cannot claim you caused damage to the
lawyer, the landlord will also have to pay your apartment. If she wants to sue you for damage to
lawyer’s fees.41 See Triple Damages. the apartment, she must start a separate case.43

For more information about demand letters go The landlord is not allowed to keep any part of
to www.mass.gov/ago/consumer- your deposit unless she sends you the list of
resources/consumer-assistance/93a-demand- damage and repairs within 30 days of the day you
letter.html. move out.44

b. Taking Your c. Triple Damages

Landlord to Court
If you go to court, the court must award 3 times
You can take your landlord to court if she: your security deposit if the court finds that your
landlord has failed to:
 Fails to respond to your demand letter;
 Properly deposit a security deposit in a bank
 Fails to return your security deposit, with account separate from the landlord's funds
interest, within 30 days of the day you move and protected from creditors;45
out, or 30 days of the last day of your lease;
 Transfer a security deposit to a new owner;
 Fails to give you a complete list of damages or
within 30 days after you move out;
 Return the security deposit or balance that
 Failed to give you a complete receipt within you have a right to within 30 days of the
30 days of your giving the landlord a end of your tenancy.46
security deposit when you first moved in.
d. Where to file
 Failed to put the money in a separate bank
account that is protected from creditors; Most security deposit cases can be filed as a
Small Claims case. Housing Courts, District
 Failed to transfer a security deposit to a new Courts, and the Boston Municipal Court all have
owner; or Small Claims sessions.
 Asked you to give up your rights orally or in The Massachusetts Court website has lots of
writing. information about Small Claims and forms in
multiple languages that you can use at:
You can sue for up to $7,000 in Small Claims www.mass.gov/courts/selfhelp/small-claims/.
court. If your security deposit was less than
$7,000, you can sue for 3 times the deposit, even Also, the Massachusetts Trial Court Law
though 3 times that amount may be more than Libraries website has detailed information about
$7,000. Small Claims laws in Massachusetts at:
www.mass.gov/courts/case-legal-res/law-
You can also sue her for any interest she did not lib/laws-by-subj/about/smallclaims.html
pay you during your tenancy and for the amount

Chapter 3: Security Deposit ▲ 49

If you win a Small Claims case, the landlord can The new landlord has 45 days to send you a
appeal. Most landlords do not appeal. To appeal, notice about your security deposit, last month’s
the landlord has to give the court a “bond” to rent, and interest owed.
start the appeal. The amount of the bond is 3
times the security deposit.47 This law is to keep If the new landlord does not send you this notice
the landlord from using the court to tie up your by the deadline, the old landlord must return
security deposit in a lengthy lawsuit. your deposit, plus interest.48

If 45 days pass and you have not heard from the

Why Is There a Security new landlord, write to the old landlord to
Deposit Law demand she return your money, plus interest.49
See Security Deposit Demand Letter for
In 1975, Massachusetts Public Interest Tenants Moving Out (Form 6). If the old
Research Group (MassPIRG) proved that landlord does not return your money, you can
landlords were keeping tenants’ deposits sue her for 3 times the amount she owes you.50
illegally, forcing tenants to sue to get them
If the new landlord asks you to pay another
back. If a tenant sued and won, she could
security deposit or last month’s rent – Say, “No!”
recover the amount of the deposit and court
fees, but nothing more. For most tenants, it Then send a letter to the new owner that says:
was not worth the cost and effort of suing.
Dishonest landlords knew this and had no  You already paid the previous landlord, and
reason to obey the law. The worst punishment
they could face was to be ordered to pay the  The landlord was supposed to transfer all
deposit they should have paid in the first place. security deposits, payments for last month’s
rent, and interest to the new owner.
Because of this research, the state legislature
made the security deposit law stronger. Now, Under the law, a tenant cannot be made to pay a
landlords who refuse to refund tenants the new or additional security deposit or last month's
deposit money within 30 days, if there is no rent payment because someone else has taken
damage, may have to pay 3 times the amount. over the building.51 In most cases, the new owner
MassPIRG is a non-profit agency. is responsible for your security deposit, last
month’s rent, and interest, even if she never
received it from the old landlord.52

New Owners When you move out, the new owner must pay
you. Or she can let you live rent-free for the time
You should not lose your security deposit or last that represents the money she owes you.53
month's rent payment if the property is sold or
foreclosed or if a new management company If your old landlord lost the property to
takes over. foreclosure and the new owner does not return
the money you are owed, you may have to go to
Your landlord should forward your security court to get it back. See Foreclosures.
deposit and last month’s rent to the new owner.
But keep track of who the new owner is. If your For more information about security deposits
landlord loses the property to foreclosure, the and foreclosures, see Chapter 18: Tenants and
bank may be the new owner, or a new owner Foreclosure – How to Get Your Security
may buy the property. Deposit Back After Foreclosure.

50 ▲ Chapter 3: Security Deposits

Subsidized Housing could refuse to issue you another voucher so
that you can move;57
If you live in privately owned housing that is
 If the housing agency that pays your
subsidized by a state or federal housing program,
voucher asks you to fix damage that you, a
the landlord must follow the security deposit
household member, or a guest caused within
law. See Your Landlord's Responsibilities.
a set period of time, and if you don’t, the
But what the landlord can ask for depends on
housing agency could try to end or
the type of subsidy you have.
“terminate” your Section 8 voucher.58
1. Section 8 Housing The best way to protect your security deposit
Voucher and your voucher is to:

If you have a Section 8 voucher under the  Take steps listed in How Do I Protect My
Housing Choice Voucher Program or the Security Deposit Before
Project-Based Voucher program, your landlord I Move Out.
may charge you a security deposit that is up to
one full month’s rent.54 A full month is your  Immediately tell the housing agency and the
share of the rent plus the amount the housing landlord that you have moved out if it is
agency pays the landlord. If a full month’s rent is before your lease is over so that the housing
$1,000, a landlord could charge your $1,000 for a agency will know to make the last payment.
security deposit.
 If you are at risk of losing your Section 8
A landlord may also charge you last month’s rent voucher because of damage or unpaid rent,
in advance, but you would have to pay only your you have a right to a hearing.59 Try to get
share of the rent. For example if the rent is help from a local community organization
$1,000 and your share is $300, a landlord can or legal services.60
charge you only $300 for last month’s rent.55
The housing agency will pay its share of the last 2. Section 8 Multifamily
month’s rent the last month you are there. It will Housing (No Voucher)
not pay it in advance.
If you have "project-based" Section 8 assistance
If your share of the rent increases during your in privately owned multifamily housing (which is
tenancy, the landlord may ask for the amount of not a voucher), how much a landlord can charge
the increase to add to the last month’s rent that for a security deposits can vary slightly
she is holding.56 depending upon the program. The best thing to
do is to look at the lease.
When you move out, the landlord must return
your security deposit if there is no damage or  Some programs provide that the landlord
unpaid rent. If there is property damage that you, can charge you whichever is greater: either
a household member, or a guest caused or $50 or your share of the rent plus utilities,
unpaid rent this may prevent you from getting which is called the “Total Tenant
back your security deposit. You could also lose Payment.”61 Example: If the monthly
your voucher. For example: contract rent is $1,000 with all utilities
included and your share or “Total Tenant
 If a landlord claims that you have Payment” is $300, a landlord could charge
committed a serious or repeated lease you no more than $300 for a security
violation, which could be property damage, deposit. If, on the other hand, your
a housing agency could try to end or monthly rent share is $25, the landlord
“terminate” your Section 8 voucher or it could charge you $50.

Chapter 3: Security Deposit ▲ 51

 Other programs provide that the landlord
can charge you your share of the “Total
Help with Deposits
Tenant Payment.” They do not have a
minimum $50.62 1. Residential Assistance for
Families in Transition
The federal Section 8 housing programs have no (RAFT)
rules about last month’s rent. But it is unlikely
that a multifamily owner will require a last RAFT is a government program that helps low-
month’s rent. income families avoid homelessness. RAFT can
be used to pay for security deposit, first and last
3. Massachusetts Rental month’s rent, bank rent, or utility bills. You must
Housing Assistance have children living with you or have a disability.
The most you can get from the program is
If you have a voucher funded by the $4,000 in a 12-month period. You can apply for
Massachusetts Rental Voucher Program (MRVP) RAFT funds are your regional Housing
or the Alternative Housing Voucher Program a Education Center.
landlord may charge you a security deposit that is
up to one full month’s rent. A full month is 2. HomeBase
your share of the rent plus the amount the
housing agency pays the landlord. This should be HomeBase is a program that offers a fixed
stated in the lease. amount to homeless families with children and
pregnant women who are eligible for the state’s
4. Public Housing Emergency Assistance (EA) program. The
purpose of HomeBASE is to prevent
For federal public housing, the housing authority homelessness or to help people moving out of
is allowed to charge a security deposit that is up an EA shelter. HomeBASE can be used for a
to one full month’s rent.63 There is no variety of purposes including paying a security
requirement that a housing authority charge a deposit, and first and last month’s rent. Families
security deposit in state public housing, unless moving into subsidized housing can use
you ask to have a pet.64 HomeBASE for first month, last month rent,
and security deposit.65
There are no regulations about last month’s rent
in either state or federal public housing. 3. Private Programs
Some towns have private funds to help people in
their towns who have low incomes. Ask at your
local church or town hall. You may be able to
get some help from the Red Cross or the
Salvation Army.

52 ▲ Chapter 3: Security Deposits

Endnotes
1. G.L. c. 186, §15B applies to most landlords. The security deposit law does not apply to landlords who rent
places for seasonal or vacation purposes for 100 days or less. See G.L. c. 186, §15B(9). The security deposit law
also does not apply “to a foreclosing mortgagee or a mortgagee in possession which is a financial institution
chartered by the commonwealth or the United States.” See G.L. c. 186, §15B(5)

2. G.L. c. 186, §15B(1)(b).

3. Under G.L. c. 186, §15B(1)(b), the law is clear that a landlord can charge only first month's rent, last month's
rent, a security deposit, and the cost of a new lock. A landlord cannot try to escape the requirements of the
security deposit law by taking what is really a security deposit and calling it a “cleaning fee” or something else.
Perry v. Equity Residential Management, LLC, U.S. District Court, District of Massachusetts, Civil Action No. 12-
10779-RWZ (August 26, 2014) (G.L. 186, §15B(1)(b) does not authorize landlords to charge prospective tenants
an application fee, amenity fee, a community fee or an upfront pet fee). Where the landlord seems to be adding
a charge that bears no relation to any real work or cost, consult the Consumer Protection Act, G.L. c. 93A, §§2
and 9, and its regulations, 940 C.M.R. §3.17.

4. A rental agent can charge a "finder's fee" only if she is a licensed real estate broker or salesperson. G.L. c. 112,
§87DDD½ and 256 C.M.R. §7.00(1) and 940 C.M.R. §3.17.

5. G.L. c. 186, §15B(6)(c), (8). If a landlord has a tenant sign a lease that violates the security deposit law but
doesn't try to enforce the illegal terms, she may still be in violation of the Consumer Protection Act even
though the landlord is not subject to penalties under the security deposit law, 940 C.M.R. §3.17(3)(a)(1) and
(4)(k).

6. According to G.L. c. 186 §15B(1)(b): "At or prior to the commencement of any tenancy, no lessor may require
a tenant or prospective tenant to pay any amount in excess of the following: (i) rent for the first full month of
occupancy; and (ii) rent for the last full month of occupancy calculated at the same rate as the first month; and,
(iii) a security deposit equal to the first month's rent (emphasis added). . . . Also, see G.L. c. 186, §15B(1)(d),
which states: "No lessor or successor in interest shall at any time subsequent to the commencement of a
tenancy demand rent in advance in excess of the current month's rent or a security deposit in excess of the
amount allowed by this section. . . ." (Emphasis added.) Thus, the security deposit can never exceed the first
month's rent.

7. In Tringali v. O’Leary, No. 15-ADMS-1003, Appellate Division of the District Court Department Northern
Division (June 30, 2105) the court found that the landlord had violated the provision of the security deposit law
that required the landlord to provide the tenant with a written statement of conditions at the inception of the
tenancy and had failed to provide the tenant with annual interest on her security deposit. Citing G.L. c. 239,
8A, the court also held that the lower court erred in awarding possession to the landlord where the tenant
obtained a money judgment in an amount greater than what the landlord owed her.

8. See Tringali v. O’Leary in endnote 7, where landlord failed to provide the tenant with annual interest on her
security deposit.

9. G.L. c. 186, § 15B(2)(d).

10. G.L. c. 186, § 15B(2)(a) and (b).

11. G.L. c. 186, § 15B(3)(a).

12. Security Deposit: G.L. c. 186, §15B(3)(b). Last Month’s Rent: G.L. c. 186, §15B(2)(a). This section requires
interest to be paid no matter how long you remain as a tenant. Interest does not accrue during the last month
of your tenancy.

13. G.L. c. 186, § 15B(2)(c).

Chapter 3: Security Deposit ▲ 53

14. 940 C.M.R. §3.17(4)(e). Because the landlord's right to take a security deposit is conditioned on providing the
Statement of Condition, G.L. c. 186, §15B(1)(b)(iii), you may demand the deposit back if the landlord does not
comply. However, most tenants will choose as a tactical matter not to make this a bone of contention at the
very beginning of a tenancy. While the security deposit statute does not state a specific penalty for this
particular violation, such is a violation of M.G.L. c. 93A. See Attorney General’s Consumer Protection
Regulations 940 CMR 3.17 (4)(e) if the landlord is in the trade or commerce of renting residential property and
therefore subject to damages of the greater of actual damages or $25.00.

15. G.L. c. 186, § 15B(1)(e).

16. G.L. c. 186 §15B(1)(e), (3)(a). Placing the money in an out-of-state bank does not conform to the statute. Taylor
v. Burke, 69 Mass. App. Ct. 77, 86 (2007). “[P]rovisions are designed to recognize the ownership of the deposit
by the tenant and the landlord’s duty to hold the monies in trust.” Id. at 84.

17. G.L. c. 186, §15B(1)(e), (3)(a). See also Neihaus v. Maxwell, 54 Mass App Ct 558 (2002), 560-61, where landlord’s
method of holding security deposits for all of tenants in a single account in Massachusetts separately designated
as a “Security Deposit Account” did not violate the security deposit law. “The security deposit provisions
of G.L. c. 186, § 15B, are designed to insure that tenant monies are protected from potential diversion to the
personal use of the landlord, earn interest for the tenant, and are kept from the reach of the landlord's
creditors.” Karaa v. Kuk Yim, 86 Mass. App. Ct. 714 (2014) further found that the failure of tenants to provide a
Social Security number did not preclude the landlord from establishing a separate account in compliance with
§15B.

18. G.L. c. 186, §15B(7). The tenant is entitled to an award by the court of treble damages for this violation. The
penalty is not discretionary. The tenant does not need to prove that the landlord acted in bad faith or that the
tenant lost money because of the landlord's actions. Mellor v. Berman, 390 Mass. 275, 283 (1983). Note: Not all
violations of G.L. c. 186, §15B provide for triple damages.
19. G.L. c. 186, §15B(3)(b).

20. Security Deposit: G.L. c. 186, §15B(3)(b). The statute leaves some question as to whether any interest is
payable if you stay in the rental unit less than a year. Last Month’s Rent: G.L. c. 186, §15B(2)(a).

21. G.L. c. 186, §15B(3)(b).

22. G.L. c. 186, §15B(3)(b).

23. G.L. c. 186, §15B(3)(b) and G.L. c. 186, §15B(7). Tanella v. Hesson, 1995 Mass. App. Div. 170 (1995).

24. G.L. c. 186, §15B(2)(d). Any landlord who accepts a security deposit must keep a written record of all deposits
she has received from current tenants and from former tenants for two years after their tenancies end.

25. G.L. c. 186, §15B(2)(d).

26. G.L. c. 186, §15B(2)(d).

27. G.L. c. 186 §15B(4), (6)(e).

28. G.L. c. 186, § 15B(3)(a); (6)(a).

29. G.L. c. 186, § 15B(2)(d)(iii).

30. G.L. c. 186, § 15B(6).

31. G.L. c. 186, §15B(4)(iii), last sentence “No deduction may be made from the security deposit for any purpose
other than those set forth in this section.”

54 ▲ Chapter 3: Security Deposits

32. G.L. c. 186, §15B(4)(ii). Also, under G.L. c. 186, §15B(4)(i) and G.L. c. 186, §22(i), after a tenancy is terminated,
a landlord who is in compliance with the water submeter law may deduct the final unpaid water charges from
the tenant’s security deposit for a billing period for which the landlord has not yet been billed.

33. G.L. c. 186, §15B(4)(iii).

34. G.L. c. 186, §15B(4)(iii).

35. G.L. c. 186, § 15B(2)(d)

36. G.L. c. 186, §15B(7). The tenant is entitled to this treble damage remedy whenever the landlord fails to comply
strictly with the terms of the statute. The penalty is not discretionary. The tenant does not need to prove that
the landlord acted in bad faith or that the tenant lost money because of the landlord's actions. Mellor v. Berman,
390 Mass. 275, 283 (1983).

37. G.L. c. 186, §15B(4); (6)(e).

38. G.L. c. 186, §15B(4). Rendall v. Tarvezian, 1984 Mass. App. Div. 13 (N. Dist.), the only reported case on this
subject, says that this language means what it says even if you and the landlord agree to an early termination of
the lease. However, in that case, the landlord actually did not consent to early termination.

39. G.L. c. 186, §15B(6).

40. G.L. c. 186, §15B(6)(e), (7). In those cases where the landlord's conduct entitles you to get the deposit back
while you are still living on the premises, but the landlord refuses to return it after demand, the security deposit
law is ambiguous regarding treble damages, but the Appeals Court has interpreted the statute to require such a
remedy. Castenholz v. Caira, 21 Mass. App. Ct. 758, 764 (1986); Young v. Patukonis, 24 Mass. App. Ct. 907, 909
(1987) (rescript). Castenholz further holds that filing a lawsuit is itself considered a "demand," so that a landlord
who is properly sued for the return of the deposit and does not immediately tender it thereby becomes liable
for treble damages. Castenholz, 21 Mass. App. Ct. at 764. Also, if the landlord is subject to the Consumer
Protection Act, G.L. c. 93A, recourse can be had to its treble damage provisions. 940 C.M.R. §3.17(4)(a),(b),(e),
and (k). See McGrath v. Mishara, 386 Mass. 74, 82-87 (1982), regarding the interplay between security deposit
statute and Chapter 93A claims. Chapter 93A requires a demand 30 days before filing suit, except where the
tenant's claim is asserted by way of counterclaim against the landlord.

41. G.L. c. 186, § 15B(6)(e) and (7).

42. G.L. c. 186, § 15B(6)(a)(e) and (7).

43. G.L. c. 186, §15B(6)(b). This language does not prohibit the landlord from filing a separate lawsuit against the
tenant to recover the damages. Jinwala v. Bizzaro, 24 Mass. App. Ct. 1, 7 (1987). A landlord cannot condition her
return of part of the deposit on your agreement to release her from paying the balance. In Goes v. Feldman, 8
Mass. App. 84 (1979), a case decided under the Consumer Protection Act, a trustee who tried to retain $125 by
using a restrictive endorsement on a check was held liable for three times the entire deposit, plus costs and
attorney's fees — a total of $3,187.80.

44. G.L. c. 186, §15B(4)(iii).

45. G.L. c. 186, §15B(1)(e), (3)(a). The tenant is entitled to an award by the court of treble damage remedy
whenever the landlord fails to comply strictly with the terms of the statute. The penalty is not discretionary.
The tenant does not need to prove that the landlord acted in bad faith or that the tenant lost money because of
the landlord's actions. Mellor v. Berman, 390 Mass. 275, 279 and 283 (1983).

46. G.L. c. 186, §15B(6)(e) and (7).

47. G.L. c. 218, § 23. The constitutionality of this statute was upheld in Hampshire Village Assocs. v. District Court of
Hampshire, 381 Mass. 148, 153 (1980), cert. denied sub. nom. Ruhlander v. District Court of Hampshire, 449 U.S.
1062 (1980).

Chapter 3: Security Deposit ▲ 55

48. G.L. c. 186, §15B(5), (7A).

49. G.L. c. 186, §15B(6)(d).

50. G.L. c. 186, §15B(6)(d) and (7). See Castenholz v. Caira, 21 Mass. App. Ct. 758, 764 (1986).

51. G.L. c. 186, §15B(1)(d). See Mall Apartments Realty Trust v. Hilda Hernandez, Hampden Housing Court, 91-SC-
1865, p. 3 (March 16, 1992), where the court found that security deposit law did not insulate purchaser at
foreclosure sale from liability for deposits. See also Cruz v. Cabrera, Northeast Housing Court, 92-SC-00074, p.
4 (Sept. 25, 1992), where court found buyer at foreclosure sale liable to tenants for the return of security
deposit and awarded tenant treble damages, plus court costs (credited against unpaid rent).

52. Government agencies that take over properties for back taxes may not be responsible for the amount of the
security deposit. Some banks may not be responsible while in the process of foreclosing, but may become
responsible if they transfer title to themselves. G.L. c. 186, § 15B(5).

53. G.L. c. 186, §15B(5) (last paragraph), (7A) (last paragraph). In Vinton v. Demetrion, 19 Mass. App. Ct. 948, 949
(1985) (rescript), the court affirmed that the new landlords could be liable to the tenants for damages even
though they took ownership of the property shortly after the tenants had been evicted. The decision does not
address their liability for treble damages claimed by the plaintiffs.

54. 24 C.F.R. §982.313 (Housing Choice Voucher Program; 24 C.F.R. §983.258 (Project-Based Voucher).

55. For the Housing Choice Voucher Program and Project-Based Voucher programs, there are no HUD
regulations on last month’s rent.

56. Previously, HUD regulations specifically did not permit charging last month’s rent for the Section 8 program,
since the housing agency would reimburse the owner for any vacancy loss if the tenant moved out without
prior notice. Attorney General v. Brown, 400 Mass. 826 (1987) (issue of whether landlord unlawfully discriminated
against Section 8 subsidy holders because of policy of not accepting tenants where last month’s rent could not
be collected). These regulations were changed in 1995. If an owner insisted that a Section 8 tenant pay full
contract rent as a last month's rent, this would likely be in violation of G.L. c. 151B, §4(10).

57. See 24 C.F.R. §982.551(e) (family obligation not to commit any serious or repeated violation of lease) and 24
C.R.F. §982.552(c)(1)(i) (housing agency right to terminate assistance or deny voucher for breach of family
obligations).

58. See 24 C.F.R. §982.404(b) (tenant maintenance obligations), 24 C.F.R. §982.551(c) (family obligation to comply
with tenant Housing Quality Standards requirements), and 24 C.F.R. §982.552(c)(1)(i) (right to terminate
assistance for failure to comply with family obligations); Carter v. Lynn Hous. Auth., 450 Mass. 626 (2008)
(housing authority Section 8 termination where owner pursued waste claim against tenant)

59. Carter v. Lynn Hous. Auth., 450 Mass. 626, 634 (2008).

60. Prior to 1995, owners could pursue claims against the housing agency for a certain amount of vacancy loss,
property damage, or unpaid rent if the tenant didn’t handle these matters properly. Back then, tenants would
want to make sure to contest these claims since it would affect what they had to pay back the housing agency.
HUD, however, eliminated these provisions. In some cases, tenants still have repayment agreements with
housing agencies for these claims, and a Section 8 voucher participant can face termination, or be denied future
assistance, if she fails to comply with such an agreement. See 24 C.F.R. §982.552(c)(v-vii).

61. 24 C.F.R. 880.608 (Section 8 new construction program); 24 C.F.R. §881.601 (Section 8 substantial
rehabilitation); 24 C.F.R. §882.414 (Section 8 moderate rehabilitation program); 24 C.F.R. §886.315 (Section 8
property disposition); 24 C.F.R.§§891.435, 891.635, and 891.775 (Section 202 and Section 811 supportive
housing programs). For a general discussion, see; HUD Multifamily Occupancy Handbook 4350.3, Chapter 6, §2,
and in particular Figure 6-7, which describes what can be charged for each program.

56 ▲ Chapter 3: Security Deposits

62. See 24 C.F.R. §883.701 (state housing agency set-aside); 24 C.F.R. §884.115 (Section 8 state set aside for
Section 515 rural housing); 24 C.F.R. §886.116 (Section 8 additional assistance or loan management set-aside).
For a general discussion, see; HUD Multifamily Occupancy Handbook 4350.3, Chapter 6, §2, and in particular
Figure 6-7, which describes what can be charged for each program.

63. 24 (no bold) C.F.R. §966.4(b)(5). Check the housing authority’s Admissions and Occupancy Plan and its yearly
federal Public Housing Authority Plan.

64. 760 C.M.R. §6.07(2).

65. 760 C.M.R. 65.04(3)(f)(2)(a).

Chapter 3: Security Deposit ▲ 57

58 ▲ Chapter 3: Security Deposits