How much can a landlord request?

A security deposit and last month's rent are not the same.

A security deposit is money you pay a landlord to protect them in case you damage the apartment. But a security deposit is your money. If you do not damage the property and don’t owe any rent when you vacate, you generally are entitled to get your full deposit back within 30 days after you leave. (There are a couple exceptions, see When Can I Get My Security Deposit Back? - When your tenancy ends.)

Your landlord must keep your security deposit in a bank account in Massachusetts. The account must be separate from the account they keep their own money in. And every year they must pay you the interest it earns.

Last month's rent protects your landlord in advance if you leave and do not pay rent the last month you are there.

Your landlord does not have to keep your last month's rent money in a separate bank account. But they do have to pay you interest on it every year.

If you pay last month's rent in advance, do not expect to get this money back when you move out. It will pay for your last month. 

If you do not pay last month’s rent in advance, you must pay for your last month of rent even if a landlord holds a security deposit. 

It is against the law for a landlord to charge tenants any other “moving in” fees, like:

• application or holding deposits,
• amenity or community fees,
• up-front pet fees,
• cleaning fees, or
• credit checks or application fees.³

It is also illegal for a landlord to charge you a finder’s fee. But if a real estate broker or salesperson – not the landlord – helps you find your rental unit, that person may charge you a “finder's or broker’s fee.” A broker or salesperson can charge a finder's fee only if they are licensed in the state of Massachusetts. The broker or salesperson must provide a written notice to prospective tenants with information about the fee and whether or not it is paid if a tenancy is not created.⁴ To find out if an agent is licensed, go to the state's search system to check an Occupational Board license and click "Check a license."

If a landlord tries to charge you an illegal fee:

• You can refuse to pay it.
• You do not have to rent from that landlord. Find a landlord who follows the law.
• If you do rent from that landlord, get a written, itemized receipt for everything you pay. Make sure the receipt, includes the extra fees and what they are for. After you move in, subtract the amount you paid in illegal fees from your rent. Write the landlord a letter that says you have subtracted the illegal fees from the rent. Include the itemized receipt.

A landlord that charges a fee or security deposit to some groups of people and does not charge the same fee or deposit to others may be breaking the discrimination laws. It is illegal for a landlord to discriminate against groups the law protects, including: single parents, people of color, people on welfare, people with small children, people with disabilities, and people with Section 8 or other rental assistance. If the landlord tries to discriminate against you, see Chapter 7: Discrimination.

Your landlord cannot take away your rights under the security deposit law by using a written lease that conflicts with the law. “Your landlord can keep your security deposit if you rent the apartment for less than 6 months,” is an example of an illegal clause. Your landlord cannot do this.

If your landlord has you sign a lease with a clause that conflicts with the security deposit law, you have the right to get your security deposit back as soon you ask for it. See Getting Back Your Security Deposit.⁵

After you move in, a landlord might seek to increase your security deposit and last month’s rent deposit. Some landlords will demand that you pay increased amounts for either or both the security deposit or the last month's rent if you agree to a rent increase.

If you agree to a new tenancy with a higher rent, the landlord may be permitted to increase the security deposit and last month’s rent. To create a new tenancy, the prior tenancy must be terminated. This can happen either automatically by the terms in your lease or agreement or the landlord must send a written notice of termination of tenancy.

If you decide to pay the increased security deposit and last month’s rent, the amounts for either cannot be greater than the amount of the new rent. If you are unable to pay the higher amounts immediately, another approach would be to negotiate with your landlord to pay the increase over a period of time. Keep good records of all payments to protect your rights.