Massachusetts Security Deposit Law - Is it worth the aggravation?
-I've been reading a lot on here about how to handle security deposits when it comes time to assess damage and determine what is normal wear and tear and what is "damage" that can be charged against the security deposit. In, Massachusetts, this is a really sticky situation.
The security deposit has to be kept in an interest-bearing account and the interest has to be accounted for when a tenant moves out or when the property is sold. When a security deposit is taken, the landlord must provide the tenant a receipt with the amount of the deposit which can not exceed the amount of one month's rent. A statement of conditions must be filled out detailing existing damage and the condition of the rental unit at the time of receipt of the security deposit. Within 30 days of receiving the deposit, the landlord must give the tenant the name of the bank where the deposit is being held and the account number.
If the landlord does not follow all of the above rules when handling a security deposit, he is liable for damages equal to triple the value of the security deposit (treble damages)
There are a few more things that landlords should know but you should be getting the point that in MA, it's a big deal for landlords to properly handle the security deposit.
So my question is this....
How many of you landlords in Massachusetts choose not to even collect security deposits? (I will raise my hand on that.) I choose not to as I don't want to have to follow all of the above rules.
I've had a couple of instances where damages have exceeded the amount of the security deposit I could have collected but in reality the cost to hire an attorney to fight it and the time I would have spent dealing with this tenant any further support my thinking that it's just not worth dealing with all the rules and regulations.
I'm thinking this could be an upcoming blog post and would love to get some comments to use from other landlords.
What are your thoughts on security deposits? Did you even realize there were all these steps you had to follow if you are going to collect a security deposit?