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  1. #1
    Join Date
    Nov 2006
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    1

    Post Security Deposit Issue

    I am a new landlord in Massachusetts. I own a two family and recently rented to a person in February of 2006. I neglected to have the tenant sign a 'Statement of Condition' document before renting the unit. A mistake I know. In addition I also failed to provide her with the bank account number in which the security deposit was placed in escrow although I did deposit the security deposit in a separate escrow account.

    I have read that in Massachusetts if the tenant moves out prior to 1 year (the rental agreement was a tenant at will) the landlord is not required to pay interest on the security deposit. Is this true.

    Second, does the statement of condition only apply if I were to pursue damages to the apartment? The tenant moved out on 11/1 and left several personal belongings that I am required to remove, including hazardous waste (a computer monitor and car tire). Can I withhold a portion of the deposit to cover my expenses to dispose of these items even though I do not have a signed statment of condition?

  2. #2
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    Default Re: Security Deposit Issue

    Quote Quoting DDEF
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    I have read that in Massachusetts if the tenant moves out prior to 1 year (the rental agreement was a tenant at will) the landlord is not required to pay interest on the security deposit. Is this true.
    What are you reading? This suggests otherwise - that you owe interest regardless of the length of the tenancy, with the "one year" language referencing only when you must make payment of the interest if the tenancy extends beyond a year.
    Quote Quoting Chapter 186: Section 15B(3)(b)
    A lessor of residential real property who holds a security deposit pursuant to this section for a period of one year or longer from the commencement of the term of the tenancy shall, beginning with the first day of the tenancy, pay interest at the rate of five per cent per year, or other such lesser amount of interest as has been received from the bank where the deposit has been held payable to the tenant at the end of each year of the tenancy. Such interest shall be paid over to the tenant each year as provided in this clause, provided, however, that in the event that the tenancy is terminated before the anniversary date of the tenancy, the tenant shall receive all accrued interest within thirty days of such termination. Such interest shall be beyond the claims of such lessor, except as provided for in this section. At the end of each year of a tenancy, such lessor shall give or send to the tenant from whom a security deposit has been received a statement which shall indicate the name and address of the bank in which the security deposit has been placed, the amount of the deposit, the account number, and the amount of interest payable by such lessor to the tenant. The lessor shall at the same time give or send to each such tenant the interest which is due or shall include with the statement required by this clause a notification that the tenant may deduct the interest from the tenant’s next rental payment. If, after thirty days from the end of each year of the tenancy, the tenant has not received such notice or payment, the tenant may deduct from his next rent payment the interest due.
    Maybe you have another provision in mind - it would be helpful if you identified it.
    Quote Quoting DDEF
    Second, does the statement of condition only apply if I were to pursue damages to the apartment? The tenant moved out on 11/1 and left several personal belongings that I am required to remove, including hazardous waste (a computer monitor and car tire). Can I withhold a portion of the deposit to cover my expenses to dispose of these items even though I do not have a signed statment of condition?
    When else would the statement of conditions apply? It's about proving the condition of the apartment. But if you read the statute, Section (4)(iii), there's nothing about deducting cleaning costs short of repairs from the security deposit. Briefly restated, the statute speaks of deductions for (i) unpaid rent or water charges, (ii) any unpaid increase in real estate taxes which the tenant is obligated to pay, and (iii) a reasonable amount necessary to repair any damage caused to the dwelling unit. So I suggest that you find clear authority or get clearance from a lawyer before you read that language so expansively as to include the cost of disposal of a couple of items left behind by the tenant.

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