The Following forms may be copied and reprinted and used.
The Security Deposit
and Last Month's Rent Law
(A trap for the unwary Massachusetts Residential Landlord)
Many states regulate residential landlord's collection and
accounting for security deposits and last month's rent laws (which do not apply
to commercial tenancies), and Massachusetts is no exception. Failure
to comply with the heavily-regulated requirements of handling a security deposit
and/or last month's rent deposit, can expose a landlord not only to forfeiture
of those funds, but also to double or treble damages, together with tenant's
attorney fees, in certain circumstances. So care must be taken by the
landlord to comply with the law, set forth at Massachusetts General Laws,
Chapter 186, section 15B, which if you can't find elsewhere, can be located on
my webpage under the heading "Landlord Links."
A landlord would be foolish to take a security deposit and/or
a last month's rent deposit, without first reading that law, which among other
things, advises you that such amounts can not exceed the equivalent of a month's
rent, that receipts have to be provided to tenants, that a landlord must use a
"written statement of the conditions" form, and place the security
deposit in a Massachusetts interest bearing bank account, free from the claims
of the landlord's creditors, that interest must be paid to the tenant every
year, and that the landlord has to account in writing to the tenant, upon
termination of occupancy or sale of the property, for the security deposit and
accrued interest. This is not intended to act as a comprehensive review of the
requirements of the security deposit/last month's rent law; make sure you read
the statute in its entirety first.
Just because a landlord experiences rent arrears or property
damages does not mean the landlord can apply an otherwise mishandled deposit, so
be careful to cross your "t's" and dot your "I's", by
reading the law, setting up proper bank accounts, and use the right forms, which
forms are attached hereto for your use.
By the way, you'll also find the security deposit/last
month's rent law deals with more than just that; it also addresses late rent
charges, landlord's rights to reserve access to the apartment during the
tenancy, and other choice tidbits. Also, don't forget to photograph the
condition of the apartment right before your tenants move in, and also to
document any damages before or after a tenancy: photographs are worth a thousand
words, should the matter ever arise in court.
by
Peter Mark Heintzelman, Esq.
Visit my web page at: www.Heintzelaw.com
Copyright 2000 all rights reserved
Rev. 8/2000
=========================================================
SECURITY
DEPOSIT AND/OR LAST MONTH'S RENT RECEIPT
TO: ________________ APT: ___________________________________
COMMENCEMENT DATE OF TENANCY: _________
I do hereby acknowledge receipt this day from the tenant
referenced above, the following amounts:
1. First Month's Rent for the Month of ________, 200___, in the sum of
$______.___;
2. Last Month's Rent deposit in the amount of $______.___;
3. Security Deposit in the amount of (no more than one month's rent
$______.___;
4. Key/lock purchase and installation cost in the sum of
$______.___;
TOTAL RECEIVED: $______.___.
The tenant is entitled to interest on the last month's rent
and security deposit at the rate of 5% per year, or other such lesser amount of
interest as has been received from the banks where the deposits have been
separately held, payable in accordance with the security deposit/ last month's
rent law. The tenant is hereby respectfully advised to be sure and provide
the landlord with a forwarding address at the termination of the tenancy so the
landlord may comply with the accounting/statement requirements of the security
deposit and last month's rent law.
Signed this ____ day of ___________, 2001.
X___________________________________
Print name of person receiving amounts:
Address: ________________________________________
________________________________________
Telephone Number:________________________________
The landlord, if different than the person above who received
the amounts listed, is:
Landlord's Name:____________________________________
Landlord's Address:___________________________________
___________________________________
Landlord's Telephone Number: __________________________
Landlords: Deliver this form simultaneously with your receipt of said monies,
and keep a copy for your own records.
Rev. 8/2000
=========================================================
WRITTEN
STATEMENT OF THE PRESENT CONDITIONS OF THE APARTMENT
The following paragraph must be in minimum twelve-point bold-face type:
This is a statement of the condition of the premises you have leased or
rented. You should read it carefully in order to see if it is correct.
If it is correct, you must sign it. This will show that you agree
that the list is correct and complete. If it is not correct, you must
attach a separate signed list of any damage which you believe exists in the
premises. This statement must be returned to the lessor or his agent
within fifteen days after you receive this list or within fifteen days after you
move in, whichever is later. If you do not return this list, within the
specified time period, a court may later view your failure to return the list as
your agreement that the list is complete and correct in any suit which you may
bring to recover the security deposit.
If the tenant submits to the lessor or his agent a separate list of damages, the
lessor or his agent shall, within fifteen days of receiving said separate list,
return a copy of said list to the tenant with either such lessor's signed
agreement with the content thereof, or a clear statement of disagreement
attached.
Tenants: ___________________________
Apartment Address:
___________________________________________________
The following is a comprehensive listing of any damage
existing in the premises, if any, at the commencement of the tenancy, when the
security deposit is received, and such listing shall include, but not be limited
to, any violations of the state sanitary or state building codes certified by
the local board of health or building official, or adjudicated by a court and
now existing at the premises (if not filled in, than None):
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Signed by the landlord or agent of the landlord, this _____
day of ________, 200____.
X______________________
Print name of landlord or agent
signing form:
______________________________
Address:________________________
________________________
Telephone: _____________________
Signed by the Tenant this ____ day of ________, 200___
X____________________________
Note: This form is required if tenant has paid a security deposit. (It
should also be used, even if there is no security deposit)
Rev. 8/2000