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Security Deposit Alternative in Massachusetts

Massachusetts §15B limits required upfront payments to the first month's rent, the last month's rent at the same rate, a deposit no larger than the first month's rent, and the purchase and installation cost of a key and lock, subject to its regulation-dependent fee provision. Deposits must follow the account and condition-statement rules. Return the balance within 30 days after the written lease ends or occupancy under a tenancy at will terminates; damage deductions require a sworn itemized list and supporting cost evidence within that period.

What Massachusetts law says about security deposits

Can you require it?
Confirm authorizing rules
The statute lets EOHLC authorize a fee by regulation. Confirm the current regulations and their requirements before offering an arrangement.
Statutory cap
A deposit no larger than the first month's rent, and only three other things may be collected up front
Return deadline
30 days after the written lease ends or tenancy-at-will occupancy terminates
The law
Massachusetts's security deposit law
M.G.L. c.186 s.15B

Source baseline: . See the official Massachusetts source. Deposit rules change, and this is general information rather than legal advice. Confirm the current text with your own counsel before you change a lease.

Can you require it of every Massachusetts resident?

Massachusetts §15B(1)(b)(iii) permits EOHLC to authorize a fee in lieu of a deposit by regulation after consulting the attorney general. Any authorizing rules must make the arrangement optional for both parties, require written agreement and disclosure of any nonrefundable amount, and limit total fees across the lease and extensions to one month's rent. They must preserve the resident's choice to pay a deposit and later opt out; fees already paid plus that deposit cannot exceed one month's rent in total. The statute also requires equal offering and limits the factors used to set fees. The statute alone does not confirm that an arrangement is currently authorized or that Beagle's contract complies; verify the applicable regulations before use.

Fee-in-lieu provision: M.G.L. c.186 s.15B(1)(b), read on .

Rules differ by state and by city, and subsidized housing is its own question. This is general information for property managers, not legal advice. Get a written opinion before you make the fee a condition of tenancy anywhere.

How the program works in Massachusetts

Review Beagle's deposit alternative alongside the agreement for your property. Protection, resident responsibilities and claim handling depend on the program terms and applicable state and local requirements.

  1. Explain the options at signing

    A qualifying fee arrangement lets a resident pay a monthly charge instead of providing the full cash deposit. Explain the available deposit choice, refundability and continuing resident obligations at signing. The payment’s legal treatment depends on the arrangement and jurisdiction.

  2. Match protection to the lease

    Compare the selected program’s covered losses, limit, exclusions and claim requirements with the deposit your lease would require. Payment depends on an eligible claim and the program terms; a fee does not itself guarantee the same recovery as cash security.

  3. Document move-out and give notice

    A deposit alternative changes how an eligible claim is paid. Keep move-in and move-out evidence, provide the notices required for the property's jurisdiction, and follow the program's claim process. Claim review and resident disputes can still require your team's involvement.

  4. Agree the program economics

    Confirm the resident’s charge and any property administration payment in your quote and agreement. Include permitted fees in the disclosures required for the property; earnings depend on the agreed economics and applicable law.

Security deposit rules in other states

Show 38 more states

Massachusetts security deposit alternative FAQs

Section 15B requires authorization through EOHLC regulations and specifies what those rules must contain. This source check verifies the statutory framework, not the issuance or current status of implementing regulations. Confirm the current authorizing rules with EOHLC and have the proposed agreement reviewed before offering it.

See it on your Massachusetts units

Run the selected program against your own unit count, or review its charges, onboarding and agreement terms with our team.