What Both Tenant and Landlord Need to Know About Security Deposit

You have just signed a lease for a new apartment and paid your future landlord 1st month’s rent and a security deposit. That’s when you remember you also had paid a security deposit at the soon-to-be the old place. So when do you get that money back? What if the old landlord doesn’t want to pay it back?

First off, landlords have 30 days to return the security deposit. So a renter who leaves an apartment, say, by December 1st should have the security deposit along with one year’s worth of interest in hand by January 1st.  But that is not always the case.

If you have left your old place in decent shape but your former landlord has decided to keep part or all of your deposit, you may be able to take him to court and get triple damages.

If a landlord is taking a security deposit, it can’t be more than one month’s rent. The security deposit must be placed in an escrow account; separate from landlord’s personal account, in a bank located in Massachusetts.

Within 30 days of receiving the security deposit, the landlord is required to provide the tenant with a written statement containing the name & address of the bank, the account number and the amount being held in escrow. If the landlord fails to do so, the law requires the immediate return of the security deposit upon demand. The landlord is required to pay 5 percent interest, or actual rate of interest, every year on the anniversary date of the lease, and this information must be documented with bank statements.

Apartment Statement of Conditions

Before the tenant moves in, the landlord must send a written statement (Apartment Condition Statement) describing the condition of the apartment. The tenant is allowed 15 days after move-in to respond if any discrepancies or problems exist. The tenant should always respond detailing everything that is wrong with the apartment. This establishes a baseline for later arguments over damage.

After the tenant has moved out, the landlord is required to return the security deposit with interest or send a letter explaining the reason for any withholdings.
If there is a deduction, it must be stated with specificity as to the nature of the damage and the repairs necessary to correct the damage, and it must be accompanied by written evidence of the cost, such as an estimate, canceled check or receipt.

The landlord can not deduct for the damage that was listed in the statement of conditions. Under the law, deductions are not allowed for “normal wear & tear”.

If a landlord refuses to return a security deposit within 30 days and has failed to follow the above requirements, a lawsuit can be filed civil court. If a judge finds that the landlord is in error, the court could award “treble” (triple) damages in addition to making the landlord pay the tenant’s legal fees. There is a 4-year statute of limitations for bringing the lawsuit.