Legal Question in Real Estate Law in Massachusetts
Rental Deposit
My potential landlord required me leave a security deposit in the amount of $500.00 for a rental application. We decided not to rent from this company. When I returned to get my money back I was told that it would be kept for damages to the company. Is this legal? I did sign a rental application stating that any deposit I left would be forfeited, but I thought I had a certain amount of time to change my mind. We returned to within three days to get this money back. What can I do?
1 Answer from Attorneys
Re: Rental Deposit
If the landlord had not formally accepted your application and agreed to rent an apartment to you, you should be entitled to a refund of your deposit. If the landlord had accepted you and you tried to back out after acceptance, then the landlord can probably keep the deposit as damages. Once the deal has been completed, you do not have a right to change your mind later. You can try to negotiate with the landlord to agree to a 1/2 split of the deposit for the landlord's damages. If the landlord refuses and the landlord had not formally accepted you as a tenant, you can sue in Small Claims court for the return of the money. As a practical matter, you should not pay any type of deposit unless you are sure you want the apartment and want to rent from the particular landlord.