Information about Security Deposit Law in Massachusetts
If you are a landlord who owns a property in Massachusetts, then it is important for you to follow the security deposits laws. There is a limit of the amount that can be collected in terms of security deposit from the tenant. Furthermore, also keep in mind that there are some specific rental rules for city and country that you should know. If you are looking for professional assistance, then you should contact Cape Cod property managers for the right guidance. In the following blog, you will get detailed knowledge about the mass security deposit law:
Security Deposit Limit
A landlord can only keep the rent of one month as a security deposit but not more than that.
Storing Security Deposit
According to security deposit law Massachusetts, the security deposit should be placed in a separate bank account. It should not be mixed with other funds. The landlord should pay the annual interest on the security deposit to the tenants.
In case, if the lease is terminated before one year, then the landlord should provide full interest that is accumulated within the time of 30 days of lease termination. Every year, the landlord should provide a written statement about the security deposit for rent to the tenants that will include the information:
- Interest rate.
- Name and address of the bank.
- Amount of security deposited.
- Amount of security to be paid.
- The number of the account in which deposit is placed.
Three Notice After Receipt of Security Deposit
There are total three separate security deposit notices to tenant provided by the landlords:
Immediate Notice: Once landlord receives the security deposit, he should give a written receipt to the tenant that should include the information about the amount, name of person receiving the security deposit (it can be landlord or landlord agent), description of rented property, date of receiving deposit security, the landlord and landlord agent should sign the receipt. The name of the bank and bank address as well as the bank account number is required on the receipt.
Condition Notice Within 10 Days: Landlord has 10 days to notify the tenant with a separate notice telling about the condition of a property. After this, tenants have 15 days to provide the written information about the damages in a property. The landlord can agree or disagree with the damages listed in the rental security deposit agreement.
Notice About the Place of Security Deposit: After receiving the security deposit receipt, within the time period of 30 days, the landlord should tell the tenant about the interest rate, the name, and address of the bank, amount deposited in a bank, and the account number in written form.
The Record Landlord Should Keep about Security Deposit
The landlord should keep the record of security deposit collected against the property. The record should have the following information:
Detail description of the damage done to a unit (property).
- The date of terminating the tenancy.
- If repair is done, then the date of repair along with the cost should be written. The copies of the repairs should be kept as well.
- Copies of other notices provided to tenants including deposit receipt and statement of condition.
The tenants should be given access to the security deposit on request during normal business hours by the landlord.
Keeping Tenant’s Security Deposit
The landlord can keep the security of tenant either complete or a portion in the following conditions:
If rent is not paid.
- If water bills are not paid.
- Unpaid real estate taxes that were obligatory for the tenants.
- Damage not due to wear or tear.
Returning of Security Deposit and Last Month’s Rent
The tenant will get the security deposit and last month’s rent if the landlord fails to do the following:
Fails to give the payments (security deposit and last month’s rent) records to the tenants in business hours.
- Fails to provide information in written form about the security deposit amount, bank information and account number within a time of 30 days.
- Have deducted the money for the damages without properly stating them in the document.
- Using lease that conflict with prepayments, try to enforcing the lease, and forcing tenants to leave their rights.
- If the property is transferred to a new owner, then the previous landlord is responsible to transfer the security deposit to new a landlord. The new landlord will inform the tenants within the time of 45 days that he is now responsible for the security deposit including the business address, name, and contact number.
Hope now you are aware of the various conditions regarding the security deposit. Furthermore, if you are looking to get assistance regarding the laws related to property, information about services regarding vacation property management Cape Cod or more, then you should contact our professional property managers.
For more detail about our services, you can call us at (508) 509-4485.
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