Does a landlord have to pay interest on a security deposit in Massachusetts?

Yes. Massachusetts requires a landlord to pay the tenant interest on a security deposit. 5 % or the bank rate, paid annually; the deposit must be in a separate Massachusetts account named to the tenant. The deposit itself must be returned within 30 days of the end of the tenancy. This is M.G.L. c. 186, § 15B.

WhatMassachusetts
Interest payableYes
How it works5 % or the bank rate, paid annually; the deposit must be in a separate Massachusetts account named to the tenant.
Deadline to return the deposit30 days

Source

M.G.L. c. 186, § 15B

Read the statute in the General Laws of Massachusetts (Massachusetts Legislature): malegislature.gov.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

Seayora computes the deadline this rule sets from the tenancy’s own dates, shows it on the deposit statement, and reminds the landlord before it falls due — so the answer above is not reference material sitting beside the product, it is the rule the product enforces.

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