What a landlord may collect
Under M.G.L. c. 186, § 15B(1)(b), at or before the start of a tenancy a landlord (or, since August 1, 2025, a landlord's agent) may collect no more than: first month's rent; last month's rent at the same rate; a security deposit equal to one month's rent; and the cost of buying and installing a lock and key. The deposit is allowed only if it is held as § 15B(3) requires and you receive the statement of condition. Later in the tenancy, the landlord may not demand rent in advance beyond the current month or a deposit above that limit.
Receipts, a separate account and the statement of condition
- Receipt at payment: amount, date, who received it, the landlord's name if an agent took it, and a description of the unit, signed by the recipient.
- Separate interest-bearing account at a bank located in Massachusetts, beyond the reach of the landlord's creditors. Within 30 days you get a receipt with the bank's name and location, the amount and the account number. Failure entitles you to the immediate return of the deposit (§ 15B(3)(a)).
- Statement of condition within 10 days after the tenancy starts (or when the deposit is paid, if later), listing existing damage including certified code violations. You have 15 days to sign it or attach your own signed list of damage; the landlord has 15 days to respond (§ 15B(2)(c)).
Interest every year
If the landlord holds the deposit for a year or more, it owes interest from the first day of the tenancy at 5% a year, or the lower amount the bank actually paid. It is paid yearly with a statement of the bank, account and interest, or by notice that you may deduct it from rent. If neither arrives within 30 days after the end of the tenancy year, you may deduct it yourself (§ 15B(3)(b)). Last month's rent paid in advance also earns interest, and failing to pay that interest can cost the landlord three times the interest owed (§ 15B(2)(a)).
Deductions need a sworn, documented list
Within 30 days after the tenancy ends, the landlord must return the deposit with interest. The only deductions allowed are unpaid rent or water charges, certain unpaid real estate tax increases under a valid tax escalation clause, and reasonable repair costs for damage beyond wear and tear (§ 15B(4)). Damage deductions require an itemized list sworn under pains and penalties of perjury, with written evidence such as estimates, bills, invoices or receipts. Damage already recorded on the statement of condition cannot be charged unless it was repaired and the new damage is unrelated.
Steps to recover a Massachusetts deposit
- Collect every receipt: the deposit receipt, the bank receipt and yearly interest statements.
- Return the statement of condition, with your own list, within 15 days.
- Give your forwarding address at move-out.
- After 30 days, send a demand letter citing M.G.L. c. 186, § 15B. If that fails, file a claim in small claims court.
Neighboring states
New York also caps deposits at one month. New Jersey also requires interest and a bank in the state.
Frequently asked questions
How much can a Massachusetts landlord charge up front?
First month's rent, last month's rent, a security deposit of no more than one month's rent, and the cost of a new lock and key (M.G.L. c. 186, § 15B(1)(b)).
Where must a Massachusetts deposit be kept?
In a separate, interest-bearing account at a bank located in Massachusetts, with a receipt to you within 30 days showing the bank, amount and account number.
Do Massachusetts landlords pay interest?
Yes. On deposits held a year or more, 5% a year or the lower rate the bank actually paid, every year.
How long does a Massachusetts landlord have to return a deposit?
30 days after the tenancy ends. Damage deductions need a sworn itemized list with estimates, bills or receipts.
What is the penalty in Massachusetts?
For a wrongful account, transfer or late-return failure, three times the deposit or balance owed, plus 5% interest, court costs and attorney's fees (§ 15B(7)).
Sources
Last reviewed Oct 17, 2026. Read how we verify. Found an error? Tell us.