Is the tenant owed 5% per year on the last month's rent (not security deposit) in MA?

Asked over 1 year ago - Boston, MA

As a landlord, I didn't deposit the last month's rent in a interest bearing account since banks are not giving interest anymore. I just put the money into my regular checking account. So, do I owe the tenant 5% anyways?

Again, this is about the last month's rent and not the security deposit.

Thanks.

Attorney answers (4)

  1. George M. Megaloudis

    Contributor Level 9

    3

    Lawyers agree

    1

    Answered . If you put the rent in your pocket.... In this case a checking account... That you use regulaly.... even if you had the balance sitting there....Then yes, you owe them 5%. If you out it in a checking account that you didn't use, other than to hold this money.... Then you owe them the interest that accumulated. The law reads in relevant part "...statement indicating that the tenant is entitled to interest on said rent payment 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..." See mgl 186 section 15b subsection 2a. Good luck.

    The answer provided is intended for general informational purposes only and should not be construed as a... more
  2. Erik Hammarlund

    Contributor Level 18

    2

    Lawyers agree

    Answered . Yes. Also, if you don't know the answer to that, chances are that you haven't complied fully with 186 s15B and you should consult with an attorney to avoid getting sued.

    Do you want accurate, personalized, legal advice that you can rely on? You will have to hire an attorney, not ask... more
  3. Julie Court Molloy

    Contributor Level 15

    1

    Lawyer agrees

    Answered . Notwithstanding the fact that banks are only paying minimal interest, this is a very serious infraction on your part, regardless of your intent. You could be held liable for triple damages, attorney's fees and costs.

    Consult an experienced landlord tenant attorney at once.

    No attorney-client relatonship is created in responding to this question, and advice provided is based solely on... more
  4. Adam Peter Phipps

    Contributor Level 11

    1

    Lawyer agrees

    Answered . Yes! For all the reasons that have been stated. I would also reinforce, get a landlord tenant lawyer to handle this for you, because honestly if you didn't handle this part correctly, you probably made other more critical mistakes that could open you up to large awards for the tenant and you could end up paying the tenant's attorney's fees as well. I recently settled a case with a landlord who was looking at paying a $7500 award to the tenant and a $22,000 attorney's fee award if we had gone to trial.

    These are generic informational answers, not to be construed as legal advice or creating an Attorney client... more

Related Topics

Property rental agreement

A rental agreement is a contract outlining terms of tenancy for a certain period of time. Short-term rental agreements may renew automatically until cancelled.

Landlord-tenant law

Landlord-tenant law is governed mostly by state laws, and covers issues like security deposit limits and deadlines, evictions, and the right to withhold rent.

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