Massachusetts law is very clear regarding the landlord’s responsibility of handling both the tenant’s Security Deposit and Last Months Rent. Landlords’ obligations when holding both of these types of deposits are highly regulated and there are potentially serious penalties for mishandling either type of deposit. Massachusetts landlords should remember that Security Deposits must be kept in a separate interest bearing account, while there is no obligation to do so for Last Month’s Rent. Landlords are obligated to pay interest on both types of deposits on a yearly basis.

If you have questions regarding the proper management of Security Deposits and/or Last Month’s Rent under Massachusetts law, please contact the landlord/ tenant attorneys at Doherty, Ciechanowski, Dugan, & Cannon for an initial consultation.