What is a SECURITY DEPOSIT

The security deposit is used to compensate for the cost of repair of any unreasonable damage to the rental property caused by the tenant, other occupants, or their guests during the tenancy.

A security deposit is the property of the tenant unless a landlord is authorized to use it. Therefore, a landlord must keep a tenant’s security deposit in a separate, interest-bearing bank account in Massachusetts. The landlord must also identify to the bank and the tenant that the accounts have funds that don’t belong to the landlord and are being held in trust (escrow) for the tenant.

Within 30 days of depositing the security deposit, the landlord must give the tenant in writing:

The name and location of the bank where the deposit is The amount of the depositThe account number