Legal Question in Real Estate Law in Massachusetts

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

I didn't deposit the last month's rent in a interest bearing account since banks are not giving interest anymore. So, do I owe the tenant 5% anyways?

Thanks.


Asked on 5/24/13, 5:23 pm

2 Answers from Attorneys
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

i believe it is the interest provided by the bank

Read more
Answered on 5/27/13, 11:41 am
Christopher Vaughn-Martel Charles River Law Partners, LLC

The law mandates that you place a tenant's security deposit into a separate interest-bearing account. I believe every bank offers at least one interest-bearing account option to its customers, even if interest rates are extremely low right now. If you did not place the tenant's money into an interest-bearing account, it would appear you must pay 5%.

Read more
Answered on 5/27/13, 5:45 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Massachusetts