The Landlords’ Security Deposit Quick Checklist

Security deposit law in Massachusetts is very specific. If you mess it up and get taken to court over it, you could end up paying triple damages plus attorney’s fees. So, if you are new to landlording in Massachusetts, we strongly suggest you head over to our security deposit landing page and read it carefully.

A cartoon image of a green checkmark in a white box, which is set against a gray background.

There’s a lot to remember when it comes to handling a security deposit in Massachusetts. Take it one step at a time. (Image: Lic CC BY SA 4.0 MassLandlords Inc.)

For reference, security deposits are covered in MGL Chapter 186 Section 15b. Members can read our plain-language explainer as well.

For seasoned landlords who just need a quick referral guide, this checklist is for you.

Before the tenancy:

  1. Use our annual maintenance checklist to find everything broken or leaking.
  2. Fix as many things as possible.
  3. Walk through the apartment and make notes of any remaining issues on a written conditions statement. Include this in the lease packet. (Your renter has 15 days from the start of the tenancy to object, otherwise anything you haven't listed is presumed in perfect working order.)
  4. Take pictures of everything in every room. A good rule of thumb is to aim for 20 pictures for each ordinary room and 50 pictures for each kitchen or bath. This is your evidence for court.

At the start of a tenancy:

  1. Collect the security deposit and whatever information your bank needs to open the account. A typical bank will need a form W-9 and a copy of the tenant's license. If they are not a US person, use a form W-8 BEN. Immediately issue a move-in money receipt.
  2. Within 30 days, deposit the security deposit in a Massachusetts bank, in a landlord–tenant account. Immediately issue a security deposit receipt.

Annual Maintenance:

  1. Pay the tenant accrued interest each year.
  2. Issue the security deposit annual statement to the tenant.

Within 30 days of tenancy end (possession):

  1. Pay all interest.
  2. If there are damages, send an itemized list, with appropriate documentation.
  3. Return the original deposit, minus any damages with interest added at the end. Never take interest for repairs.

Before going to court with a renter:

  1. Talk to an attorney. Tell them you have a security deposit. If they say to give it back, give it back.

Security Deposits Law

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Illustration of a computer screen with two web pages embedded, both from MassLandlords.net: one with the headline, “The Massachusetts Security Deposit Law, Explained,” and first paragraph of text; and two, a page showing a cut-out section of the security deposit law, on the left side, with a section, on the right, headlined, “What Does the Law Say About Handling Security Deposits?” and a paragraph of explanatory text. A complete guide to Massachusetts security deposit law for landlords. Includes advice on security deposit receipts and security deposit return.
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