Massachusetts Security Deposit Law: Limits, Deadlines, and Penalties
What Massachusetts landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Massachusetts?
At or before move-in, a landlord may collect only four things: first month's rent, last month's rent, a security deposit no greater than one month's rent, and the actual cost of a new lock and key. Any other upfront charge — application fees, pet deposits, 'move-in fees' — is illegal.
Pet deposits are illegal in Massachusetts — the statute's exclusive list of permitted move-in charges (first, last, security deposit, lock fee) leaves no room for them.
When must the deposit be returned?
The deposit, plus any interest owed, must be returned within 30 days after the end of the tenancy. Any deductions must be documented in an itemized statement, sworn under the pains and penalties of perjury, with written evidence of repair costs, delivered within the same 30 days.
Deductions require an itemized list of damages, sworn to by the landlord under the pains and penalties of perjury, with written documentation (estimates, bills, invoices) of actual or estimated repair costs, delivered within 30 days of the tenancy ending.
What happens if a landlord misses the deadline?
Failing to put the deposit in a proper separate account, failing to return it within 30 days, or failing to transfer it to a successor landlord makes the landlord liable for three times the deposit (or the balance wrongfully withheld) plus 5% interest, court costs, and reasonable attorney's fees. Interest violations separately carry treble the interest owed.
Interest and holding requirements
Deposits held one year or longer earn interest at 5% per year, or the lesser rate the bank actually pays. Interest must be paid or credited annually on the anniversary of the tenancy and within 30 days of termination; last month's rent held in advance also earns interest.
The deposit must be placed in a separate interest-bearing account in a Massachusetts bank, protected from the landlord's creditors, within 30 days of receipt. The tenant must get a receipt when paying the deposit and a second receipt within 30 days identifying the bank's name, address, and account number.
Recent changes to the law
The deposit statute itself has not changed in 2024-2026, but effective August 1, 2025, Massachusetts bars passing broker fees to tenants unless the tenant hired the broker, lowering total move-in costs landlords can require.
What Massachusetts landlords get wrong
Massachusetts is the strictest deposit state in the country, and courts enforce it literally. Taking a deposit obligates you to: a receipt at payment; a separate interest-bearing account in a Massachusetts bank with a bank receipt to the tenant within 30 days; a signed statement of condition within 10 days of move-in (the tenant has 15 days to annotate it); annual 5% (or bank-rate) interest; and a sworn, documented itemized statement within 30 days of move-out. Miss almost any step and you can owe triple the deposit plus fees — many Massachusetts attorneys advise small landlords to skip the deposit entirely and rely on last month's rent, which has fewer formalities (though it also accrues interest).
The law itself
Frequently asked questions
How much can a landlord collect at move-in in Massachusetts?
Only four charges are legal: first month's rent, last month's rent, a security deposit up to one month's rent, and the actual cost of buying and installing a new lock and key. Application fees, pet deposits, cleaning fees, and move-in fees are all prohibited. Since August 2025, broker fees can only be charged to tenants who hired the broker themselves.
What does a Massachusetts landlord have to do when taking a security deposit?
Give a receipt when the deposit is paid; deposit the money in a separate interest-bearing account at a Massachusetts bank within 30 days and give the tenant a receipt with the bank name, address, and account number; and provide a signed statement of condition within 10 days of move-in. Failing the account requirement alone triggers liability for three times the deposit plus attorney's fees.
How long does a Massachusetts landlord have to return a security deposit?
30 days from the end of the tenancy, including accrued interest. Any deduction must come with an itemized statement sworn under the pains and penalties of perjury and written documentation of repair costs. Miss the deadline or the documentation and you forfeit the right to withhold anything — and risk owing treble damages, 5% interest, court costs, and the tenant's attorney's fees.
Does a security deposit earn interest in Massachusetts?
Yes. A deposit held for a year or more earns 5% per year, or the lesser amount the bank actually paid. Interest must be paid or credited toward rent each year on the tenancy's anniversary, and the balance paid within 30 days of move-out. Last month's rent collected in advance earns interest too. Shorting the tenant on interest can cost you three times the interest owed plus fees.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.