Submitted by danielparisi on Fri, 01/09/2009 - 20:21
Posted in
I have read the information regarding security deposits. I will be a landlord for the first time this summer renting weekly a beach property.
I will only be holding security deposits between 1 & 4 months. But will be returning the security deposit before 30 days from tenant check out.
- Am I required to pay interest on the security deposit?
- Can I keep all security deposit funds in one bank account (separate from other funds in my account)?
- Will I still be required to provide security deposit bank information to tenants?
Thank you
Editor's Response
Good Question. Unfortunately, all I know for sure is that Chapter 186, Section 15B of Massachusetts General laws (relevant to security deposits in rental housing) does NOT apply.
It may be a simple question of contract law (whatever the lease says, as long as it is not unconscionable or deceptive, goes). If you have a rental agent you might ask him or her what the typical practice is in MA.
If it were me, I would follow the guidelines for rental housing: (1) give the tenants an apartment condition statement that you can later use to prove damages, (2) give the tenants a receipt telling them where there money is being held (band and account number), (3) return the deposits within 30 days of the end of the rental, etc.
As for the account, I think you can put all the deposits in one trust account (that is an account that is not mingled with your funds and that protects the funds from your creditors--your bank will know.) As long as the account does not yield interest, you do not have to pay interest.
If any other attorneys read this and have more or better information, I hope they chime in. Good luck.