Massachusetts Prepaid Rent Laws: What Tenants Need to Know

If you're renting a home or apartment in Massachusetts, understanding how prepaid rent works is essential. Landlords may sometimes request upfront payments, but the state has strict prepaid rent regulations to protect renters. This guide covers what payments can be collected, practical examples, and how Massachusetts law safeguards your money.

What Is Prepaid Rent?

Prepaid rent means paying rent in advance for a future period, beyond your first month's rent. In Massachusetts, the law carefully regulates what a landlord can ask for at the start of a tenancy.

What Can a Massachusetts Landlord Legally Collect Before You Move In?

Massachusetts General Laws c. 186, § 15B specifies that your landlord can ask for only certain up-front payments when starting a new tenancy. These are:

• First month's rent
• Last month's rent (often held for your final month)
• A security deposit (up to the amount of one month's rent)
• The cost to change the lock and keys

Landlords cannot require prepaid rent for any months beyond the first and last months. Additional advance payments or 'extra months' are prohibited by law.

How Are Security Deposits Different from Prepaid Rent?

While both involve upfront payments, a security deposit is intended for covering damage or unpaid rent and must be held in a separate account. Prepaid rent (like "last month's rent") is simply money paid toward an upcoming rental period, not for damages.

Receipts and Recordkeeping: Your Rights

Landlords must give you a written receipt when collecting:

• Last month's rent
• Security deposit

These receipts must include the amount, date, and purpose, plus the name of the person receiving the funds. Keep these documents—they are important if there's ever a dispute.

Official Form Example: Statement of Condition Form

• Form Name: Statement of Condition
• When Used: If a security deposit is collected, this form documents the condition of your unit at move-in. Your landlord must provide it, giving you 15 days to make corrections or add notes.
• Where to Find: Sample Statement of Condition Form – Mass.gov

Completing this document helps ensure any existing damage isn't wrongly deducted from your deposit later.

What If a Landlord Demands Extra Prepaid Rent?

If your landlord requests more than the legal amounts (such as multiple months prepaid), politely refuse—and refer them to Massachusetts General Laws Chapter 186, Section 15B. You do not have to comply with illegal requests, and doing so could put your rights at risk.

Returning Last Month’s Rent and Security Deposit

Landlords must return any unused last month’s rent and your security deposit (minus lawful deductions) within 30 days after your tenancy ends. Security deposits are subject to specific rules and require documented reasons for any deductions.

Tenant Protections: Your Legal Rights

Massachusetts law protects you from retaliation for asserting your rights over prepaid rent. Any landlord who tries to collect unlawful fees or refuses legal refunds may be subject to financial penalties under state law.

Key Legislation and Where to Turn

• Massachusetts General Laws Chapter 186, Section 15B – Security Deposits and Rent
• Official Guidelines on Handling Security Deposits – Mass.gov

The Massachusetts Housing Court handles disputes related to landlord-tenant matters. Learn more or find your local court on the official Housing Court website.

FAQs: Massachusetts Prepaid Rent and Security Deposits

1. How much upfront rent can my landlord collect in Massachusetts?
   Just first month’s rent, last month’s rent, a security deposit (equal to one month’s rent), and the cost of changing the lock/keys.
2. Is it legal for my landlord to require three or more months’ rent in advance?
   No, collecting more than first and last month’s rent is prohibited by Massachusetts law.
3. What should I do if my landlord asks for illegal prepaid rent?
   Refuse to pay, provide the landlord with a link to the state law, and contact the Housing Court or a tenant advocate if pressure continues.
4. How is my security deposit different from a last month’s rent payment?
   Security deposits cover potential damages, while last month’s rent is for your final month living in the rental. Each must be documented separately.
5. What should I do if my security deposit or last month’s rent isn’t returned?
   Request the refund in writing. If not resolved, you can file a complaint in Housing Court.

Key Takeaways for Renters

• Massachusetts law limits upfront rent: you can only be asked for first month, last month, security deposit, and lock/keys change cost.
• Never pay extra months of rent in advance—this is not allowed by law.
• Use official forms, keep every receipt, and reach out for support if you experience legal issues.

Need Help? Resources for Renters

• Mass.gov Housing and Security Deposit Guide
• Massachusetts Legal Help – Housing Section
• Massachusetts Housing Court (for filing complaints and disputes)
• For issues with illegal fees, contact the Office of the Massachusetts Attorney General

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1. Massachusetts General Laws Chapter 186, Section 15B
2. Massachusetts Housing Court
3. Massachusetts Security Deposit Guidance
4. MassLegalHelp: Collecting Rent

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