Security Deposit in Massachusetts
State-specific overview · Property & Real Estate
Landlords must hold deposits in separate accounts and pay annual interest to tenants.
How Massachusetts treats Security Deposit
Massachusetts requires landlords to deposit security deposits in interest-bearing accounts separate from operating funds. Landlords must pay tenants the accrued interest annually or credit it against rent. Landlords have 30 days after lease termination to return the deposit plus interest, along with an itemized list of any deductions. If a landlord fails to comply with these requirements, tenants can recover the full deposit plus damages.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Massachusetts.