Massachusetts Security Deposit Law: Deadlines & Penalties

In Massachusetts, a landlord must return the security deposit, with any interest owed, within 30 days after the tenancy ends. The landlord may deduct only unpaid rent or water charges, unpaid tax increases under a valid tax escalation clause, and the reasonable cost of repairing damage the tenant caused beyond normal wear and tear. Nothing else can come out of the deposit.

Any deduction for damage must be backed by an itemized list sworn to by the landlord under the pains and penalties of perjury, along with written evidence such as estimates, bills, invoices or receipts. The landlord generally can't charge for damage that was already noted on the move-in statement of condition. Deposits must be kept in a separate, interest-bearing account.

Massachusetts is strict. A landlord who fails to return the deposit and interest within 30 days, or who never placed it in a separate account, loses the right to keep any of it and can be ordered to pay three times the amount owed, plus 5% interest, court costs and reasonable legal fees. Deposits held a year or more earn interest at 5% a year, or the lower rate the bank actually paid.