Yes, Your Massachusetts Landlord Owes You Interest
Your landlord has been sitting on your deposit for months — maybe years. In Massachusetts, that money earns interest, and it belongs to you.
Massachusetts landlords must pay 5% annual interest on security deposits under Mass. Gen. Laws ch. 186, § 15B.
•Your Money
How Much Interest Are You Owed?
The math is straightforward. Multiply your deposit by the annual rate, then by the number of years your landlord held it.
$2,000 deposit × 5% × 2 years = $200
That is money your landlord collected from you, earned interest on (or should have), and must pay back. It does not matter whether they actually put it in an interest-bearing account — the obligation exists regardless.
•Take Action
How to Demand Your Interest
- Calculate the amount. Take your deposit, multiply by 5%, multiply by the number of years held. Round to the nearest cent.
- Send a written demand. Email or certified mail to your landlord. State the deposit amount, the period held, the applicable rate under Mass. Gen. Laws ch. 186, § 15B, and the total interest owed. Give them 14 days to respond.
- Keep records. Save your lease, any deposit receipts, move-in/move-out dates, and a copy of your demand letter. You will need these if you go to court.
•Escalation
What If Your Landlord Refuses?
If your landlord ignores your demand or refuses to pay, you have options. Massachusetts takes deposit violations seriously.
- File in small claims court. Massachusetts small claims courts handle cases up to $7,000. Filing costs about $40. No lawyer needed.
- Cite the penalty. Under Massachusetts General Laws, Massachusetts courts can award up to 3x the wrongfully withheld amount when a landlord wrongfully withholds deposit money — including interest.
- File before the deadline. You have 6 years from move-out to file a claim in Massachusetts. Do not wait.
Massachusetts courts can award up to 3x the wrongfully withheld amount for wrongfully withheld security deposits under Massachusetts General Laws. The statute of limitations is 6 years.
•Full State Law
Interest is just one piece of Massachusetts deposit law. Your landlord also has 30 days to return your deposit with an itemized statement of deductions. Read the full Massachusetts security deposit law breakdown.
●Frequently Asked Questions
Frequently Asked Questions
Does my Massachusetts landlord have to pay me interest on my security deposit?
Yes. Under Mass. Gen. Laws ch. 186, § 15B, Massachusetts landlords are required to pay 5% annual interest on security deposits. This applies to the full deposit amount for the entire time your landlord holds it.
How much deposit interest does my Massachusetts landlord owe me?
It depends on your deposit amount and how long it was held. For example, a $2,000 deposit held for 2 years at 5% earns approximately $200 in interest. Your landlord must include this when returning your deposit.
What if my Massachusetts landlord refuses to pay deposit interest?
If your landlord refuses to pay the interest owed under Mass. Gen. Laws ch. 186, § 15B, you can file a claim in small claims court. Massachusetts small claims courts handle cases up to $7,000 — filing costs about $40.
Can my landlord deduct from my deposit before paying interest in Massachusetts?
Your landlord can make lawful deductions for damage beyond normal wear and tear or unpaid rent, but they still owe interest on the deposit for the period they held it. The interest obligation and the return obligation are separate requirements under Massachusetts law.
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DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation.