Easily collect and manage deposits for every property with dedicated security deposit accounts.
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Limit: Massachusetts limits a tenant security deposit equal to one month’s rent. Collecting more than one month’s rent as a tenant deposit is prohibited under state law. The total amount must be clearly stated in the lease agreement, and landlords are required to hold the funds in a security deposit bank account in Massachusetts.
Return Deadline: The landlord must return the tenant security deposit, along with any accrued interest, within 30 days after the tenancy ends and the tenant vacates the property. If deductions are made, the landlord must include an itemized statement of damages and receipts or estimates for repairs. Failure to return the tenant deposit or provide proper documentation within 30 days can result in the landlord being liable for up to three times the withheld amount, plus interest and attorney’s fees.
Acceptable Deductions: The tenant security deposit may only be used for unpaid rent, unpaid real estate taxes (if the tenant is responsible), and damage beyond normal wear and tear. The landlord must provide an itemized list of deductions and evidence, such as repair invoices or receipts, when returning the remaining balance of the tenant deposit. Normal wear and tear cannot be deducted under any circumstances.
Where to Deposit: Massachusetts law mandates that landlords place all tenant security deposits in a separate, interest-bearing escrow account at a bank located within the state. The account must be under the tenant’s name, and the landlord must provide written notice to the tenant within 30 days of receiving the deposit. The notice must include the name and address of the bank, account number, and current security deposit interest rate. The interest earned must be paid to the tenant annually or applied toward rent if the tenancy lasts more than one year. Maintaining a security deposit escrow account in Massachusetts or a landlord tenant security deposit bank account in Massachusetts ensures compliance with the state’s strict security deposit laws and protects tenant funds.
Open a security deposit account and use physical & virtual debit cards with custom spend controls and automated transaction tagging with Schedule E categories.
Collect funds for security deposits via ACH, wire or check.
Landlords must hold every tenant's security deposit in Massachusetts in an escrow, interest-bearing account. This security deposit bank account in Massachusetts confirms that the funds are not the landlord’s property and are held safely until the lease ends.
The maximum security deposit Massachusetts landlords can charge is one month's rent. Compared to the national average security deposit, this amount might be favorable to tenants.
Interest on security deposit in Massachusetts is mandatory if the tenancy lasts for a year or more. The state law security deposit rule requires landlords to pay the security deposit interest rate equal to the bank’s rate or 5% annually, whichever is lower. You can pay interest to tenants annually or deduct it from their next rent payment.
Landlords must hold every tenant's security deposit in Massachusetts in an escrow, interest-bearing account. This security deposit bank account in Massachusetts confirms that the funds are not the landlord’s property and are held safely until the lease ends.
The maximum security deposit Massachusetts landlords can charge is one month's rent. Compared to the national average security deposit, this amount might be favorable to tenants.
Interest on security deposit in Massachusetts is mandatory if the tenancy lasts for a year or more. The state law security deposit rule requires landlords to pay the security deposit interest rate equal to the bank’s rate or 5% annually, whichever is lower. You can pay interest to tenants annually or deduct it from their next rent payment.
Collect, return, and track deposits by tenant and property, even when funds are held in external accounts.
Keep every deposit organized and accounted for with secure transfers to Massachusetts security deposit accounts.
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Track and tag payments to the right tenant and property — automatically.
Collect, return, and track deposits by tenant and property, even when funds are held in external accounts.
Keep every deposit organized and accounted for with secure transfers to Massachusetts security deposit accounts.
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Track and tag payments to the right tenant and property — automatically.
Everything you need for every part of the rental process.
Upload or create and e-sign state-specific leases online.
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
Everything you need for every part of the rental process.
Upload or create and e-sign state-specific leases online.
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
Set up your security deposit {{ state }} account and start collecting.
Open a banking account online — no monthly account maintenance fees or minimums.
Collect security deposits online via ACH or card.
Auto-tag deposits in Baselane and external accounts to specific properties.
Sign up and start collecting deposits in {{ state }}.
Open a banking account online — no monthly account maintenance fees or minimums.
Collect security deposits online via ACH or card.
Auto-tag deposits in Baselane and external accounts to specific properties.
Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.
1 month’s rent
Yes (only for tenancies over 1 year)
5% or bank rate (whichever is less); paid annually as a credit or cash
Separate, interest-bearing escrow bank account in a Massachusetts-based financial institution; inform tenant of account location and number in 30 days
Unpaid rent or fees, repairs, lease violations, and cleaning costs
30 days
1 month’s rent
Yes (only for tenancies over 1 year)
5% or bank rate (whichever is less); paid annually as a credit or cash
Separate, interest-bearing escrow bank account in a Massachusetts-based financial institution; inform tenant of account location and number in 30 days
Unpaid rent or fees, repairs, lease violations, and cleaning costs
30 days
In Massachusetts, landlords may collect no more than one month’s rent as a security deposit. Additional deposits (for pets, alterations, or other reasons) are not permitted under state law. Landlords must return the deposit, minus lawful deductions for unpaid rent or damages beyond normal wear and tear, within 30 days after the tenancy ends.
Baselane Security Deposit Accounts are available to landlords in most U.S. states, including Massachusetts. Baselane partners with federally regulated and state-authorized banks to ensure deposits are held in separate, FDIC-insured accounts that comply with state-specific landlord-tenant laws. Availability may vary based on state banking regulations.
The landlord sets the security deposit amount according to Massachusetts law, up to one month’s rent. Baselane simply provides the compliant banking structure to hold that deposit in a dedicated, interest-bearing account and automatically generate the required documentation for both landlord and tenant.
Baselane Security Deposit Accounts are held with FDIC-insured partner banks and use bank-level encryption to protect your data and funds. Each tenant’s deposit is kept in a separate, secure account, ensuring compliance with Massachusetts law and full transparency for both parties.
No new security deposit agreement is required in Massachusetts if a tenant transitions from a fixed-term lease to a month-to-month tenancy, provided the original deposit remains valid and the tenancy is continuous. However, landlords must still comply with all account holding and annual interest payment requirements.
A landlord in Massachusetts can collect the security deposit at the start of the tenancy, typically when the lease is signed or before the tenant moves in. The landlord must deposit the funds into a Massachusetts-based, interest-bearing account and provide the tenant with a receipt and bank details within 30 days of collection.
The Massachusetts security deposit limit is strictly capped to one month's rent. You can also collect first and last month's rent plus the security deposit, but all three amounts must be equal to one month's rent each.
Yes, Massachusetts security deposit interest is required if the tenancy lasts a year or more. The money must be in a separate landlord tenant security deposit bank account in Massachusetts, and pay the tenant interest annually (5% or the bank's rate, whichever is lower).
You must give the tenant a written notice within 30 days of depositing the money and include the bank's name, location, the account number, and the deposit amount. If you fail to do so, you lose your right to keep the tenant’s security deposit.
You must return the tenant's security deposit in Massachusetts, along with any earned interest, minus valid deductions, within 30 days of the tenant moving out. If the tenant leaves before a written lease formally ends, you have 30 days after the lease's original end date to return it.
Landlord rights security deposit rules in Massachusetts allow landlords to deduct unpaid rent and severe property damage (house rental, apartment, condo) caused by tenants beyond normal wear and tear, such as floor damage, large holes in the walls, or broken appliances. Be careful when listing down deductions, as wrongful deductions can result in you facing double damages.
Yes, you can use the funds from the security deposit escrow account in Massachusetts to cover unpaid rent. But make sure to send an itemized list of deductions to tenants, including the rent they owe.
Yes, funds in a landlord's security deposit in Massachusetts can be used to cover any losses when the tenant breaks the lease term early. You can use it to cover rent owed until you find a new tenant, provided your lease agreement allows this.
The Massachusetts security deposit limit is strictly capped to one month's rent. You can also collect first and last month's rent plus the security deposit, but all three amounts must be equal to one month's rent each.
Yes, Massachusetts security deposit interest is required if the tenancy lasts a year or more. The money must be in a separate landlord tenant security deposit bank account in Massachusetts, and pay the tenant interest annually (5% or the bank's rate, whichever is lower).
You must give the tenant a written notice within 30 days of depositing the money and include the bank's name, location, the account number, and the deposit amount. If you fail to do so, you lose your right to keep the tenant’s security deposit.
You must return the tenant's security deposit in Massachusetts, along with any earned interest, minus valid deductions, within 30 days of the tenant moving out. If the tenant leaves before a written lease formally ends, you have 30 days after the lease's original end date to return it.
Landlord rights security deposit rules in Massachusetts allow landlords to deduct unpaid rent and severe property damage (house rental, apartment, condo) caused by tenants beyond normal wear and tear, such as floor damage, large holes in the walls, or broken appliances. Be careful when listing down deductions, as wrongful deductions can result in you facing double damages.
Yes, you can use the funds from the security deposit escrow account in Massachusetts to cover unpaid rent. But make sure to send an itemized list of deductions to tenants, including the rent they owe.
Yes, funds in a landlord's security deposit in Massachusetts can be used to cover any losses when the tenant breaks the lease term early. You can use it to cover rent owed until you find a new tenant, provided your lease agreement allows this.
Make it easy to manage rental security deposit accounts with Baselane's Banking accounts.
