We are far removed from the time when the Landlord held all the cards in Massachusetts residential leases.  it would be more accurate to say, “Landlord Beware!!!” Even before the recent economic downturn which Massachusetts has been experiencing began, Landlords hav been on the run. Evictions for non-payment are certainly not automatic or swift. if a family with children is involved, or a person with special needs is your tenant, you may be looking at a year or more to get people out, even if they are not paying rent.

A new scam by tenants has also arisen where the Landlord owns a Condominium Unit, and cannot keep up his mortgage or monthly common area payments. The tenant just stops paying the rent and makes a deal with the Condominium Trustees to pay the monthly fees directly to the Condominium Association. With the length of time that foreclosures are taking, this can put the tenant in a “cheap rent situation” for an extended period of time.

A word of caution to all prospective Landlords. Familiarize yourself with the rules of security deposits and collecting last month’s rent.

     1. Security Deposits.  a. Never, ever collect a Security Deposit without having a tenant sign a Condition Statement. If you leave the condition of the rental unit open to “discussion” when the tenant vacates, you are asking for a lawsuit. Once the tenant acknowledges that the rental unit is in perfect condition, or notes exceptions as they exist, the road to retaining all, or a portion, of the security deposit gets much easier.

 b. Make sure that the security deposit is placed in a segregated savings account with the tenant’s social security number being credited with the interest. A failure to so segregate these funds has been adjudicated as a consumer protection violation in Massachusetts, with consequent treble damage liability lurking.

     2. Last Month’s Rent.As long as it is so labeled, this payment can be used by the Landlord. The Landlord needs to understand that he or she MUST make annual payments of interest to the tenant on this prepayment. Failure to make these payments may also leave the Landlord subject to consumer protection penalties.

At Topkins & Bevans, we advise Landlords on how to proceed on a statewide basis. Do not hesitate to contact us with any questions you may have on lease drafting or operations. We are glad to provide timely and accurate responses.