Legal Question in Real Estate Law in Massachusetts
interest on last month's rent
How much interest must be paid to a tenant on the last months rent when they are renewing their lease?
2 Answers from Attorneys
Re: interest on last month's rent
MA requires the money be held in an interst baring account and you inform the tenant of same. Whatever interest accrues is to be paid to the tenant annually. If you did not comply with those requirements you are required to pay 5% interest on the security deposit and last months rent annually.
If you need more information please feel free to contact me.
Re: interest on last month's rent
A landlord is required to place your last month's rent (together with your security deposit payment) in an interest-bearing account in the Commonwealth of Massachusetts.
They must pay to you 5% interest on that money, or whatever the bank's interest rate might be on the account.
If you think there may be a problem with either your last month's payment or security deposit, please feel free to contact me.
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