Massachusetts Security Deposit Law: Limits, Deadlines & Deductions

The short list of what you can collect

Massachusetts doesn’t let you invent move-in charges. Under Mass. Gen. Laws ch. 186, § 15B, the only money you can take at or before the start of a tenancy is:

1. The first month’s rent
2. The last month’s rent
3. A security deposit of no more than one month’s rent
4. The actual cost of buying and installing a new lock and key

That’s the whole list. A pet deposit, a cleaning fee or a “move-in fee” isn’t on it. Since August 1, 2025, a renter also can’t be charged a broker fee when you hired the broker.

The paperwork, in order

The deposit law is strict because it treats the money as the tenant’s from the day you receive it. Here’s the sequence:

When you take the deposit. Give the tenant a written receipt showing the amount, the date, who received it and a description of the unit.

Within 10 days of the tenancy starting. Give the tenant a signed statement of condition describing the unit’s condition and any existing damage. The tenant can return it with their own notes, and you’re expected to respond. This document is the backbone of any later deduction.

Within 30 days of receiving the deposit. Give the tenant a receipt with the name and address of the Massachusetts bank holding it, the amount and the account number.

Every year. Pay interest at 5% a year, or the lower rate your bank actually pays, at the end of each year of the tenancy. Pay it to the tenant or credit it against rent. Prepaid last month’s rent also earns interest.

Where the deposit must be held

Put it in a separate, interest-bearing account at a bank located in Massachusetts. It must stay out of reach of your creditors and can’t be mixed with your own money. An online bank based in another state doesn’t meet the rule.

The 30-day return

Within 30 days after the tenancy ends, return the deposit with interest, minus lawful deductions. If you keep anything, give the tenant an itemized list of damages signed under the pains and penalties of perjury, with written evidence of each cost (estimates, bills, invoices or receipts).

Deductions are narrow:

• Unpaid rent
• A real estate tax increase owed under a valid tax escalation clause in the lease
• The reasonable cost of repairing damage beyond reasonable wear and tear

Damage that’s listed on the statement of condition can’t be charged at move-out. Neither can ordinary aging: a 20-year-old triple-decker will have worn floors and loose window sash cords whether the tenant was careful or not.

Massachusetts also has a strict lead paint law. You can’t refuse a family with a child under 6 because of lead paint, and deleading isn’t something to charge against a deposit.

A worked example at $1,600 a month

You rent a Worcester apartment for $1,600. At signing you collect first month ($1,600), last month ($1,600), a $1,600 deposit and $85 for a new lock, for $4,885. The deposit goes into a separate interest-bearing account at a Worcester bank, and the tenant gets both receipts and the statement of condition on time.

Interest: if the bank pays 0.5%, you owe the lower bank rate, about $8 a year on the deposit. If the bank pays 5% or more, you owe 5%, or $80 a year. Pay it each anniversary.

Move-out after two years:

• A broken kitchen cabinet door: $150 (invoice)
• A large wine stain on the bedroom carpet, not on the statement of condition: $280 to replace the section (estimate)
• Scuffed hallway paint: $0, reasonable wear and tear

You send a list signed under the pains and penalties of perjury, the invoice and the estimate, and a refund of $1,170 (assuming interest was paid each year) within 30 days. The last month’s rent was already used for the final month.

Treble damages

If you fail to hold the deposit properly, return it on time, or provide the signed list, the tenant can recover up to three times the deposit plus interest, court costs and attorney fees. Some violations also mean you can’t keep any of the deposit. On a $1,600 deposit, that’s $4,800 plus fees for what may have been a paperwork mistake.

This page is general information, not legal advice. Given the stakes, a short consult with a Massachusetts landlord-tenant attorney before your first lease is worth the cost.