Last Month’s Rent, Receipts, Interest and Late Fees in Massachusetts
Before you move in you may be asked for the first and last month’s rent and a deposit. Here is how Massachusetts treats the last month, the interest and receipts, late fees and rent in advance, and what to get in writing.
Can a Massachusetts landlord ask for the last month’s rent?
Yes, at or before the start of the tenancy, calculated at the same rate as the first month (G.L. c.186, 15B(1)(b)(ii)). The landlord must give a receipt showing the amount, the date, that it is for the last month of the tenancy, the person receiving it and a description of the premises, with a statement that the tenant is entitled to 5% interest and should give a forwarding address (15B(2)(a)). The Massachusetts security deposit limit calculator adds it to the other payments.
Is interest owed on the last month’s rent?
Yes. Beginning with the first day of the tenancy the landlord must pay interest at 5% a year, or the lesser rate the bank paid, paid each year or within 30 days of the end of the tenancy; interest does not accrue for the last month for which the rent was paid in advance (15B(2)(a)). A landlord that fails to pay the interest within 30 days after the tenancy ends owes three times the interest plus costs and attorney’s fees.
Can a landlord charge a late fee?
Not right away. No lease may impose any interest or penalty for failure to pay rent until 30 days after the rent was due (15B(1)(c)).
Can the landlord ask for rent in advance during the tenancy?
No more than the current month’s rent (15B(1)(d)).
Can a landlord charge for a background check or an application?
The statute lists the only payments a landlord may require at or before the start of the tenancy, and a screening or application fee is not among them. Ask for the charge in writing and for the legal basis, and ask legal aid or a licensed Massachusetts attorney.
A pre-signing checklist
Ask for the total move-in cost in writing; ask what each line is for; compare it with the first month, last month, deposit and key and lock; get a receipt for each payment; ask for the bank name and account number within 30 days; and keep the statement of condition.
How common up-front payments are treated
| Payment | Treatment | Result |
|---|---|---|
| First month’s rent | Allowed | Counts as rent |
| Last month’s rent | Allowed at the same rate | Receipt and 5% interest |
| Security deposit | Up to one month | Separate account; 30 days to return |
| Key and lock | Purchase and installation cost | Allowed |
| Pet deposit, application or move-in fee | Not among the four payments | Ask for the legal basis |
The table summarizes G.L. c.186, 15B as described above, not any particular lease.
Why skipping the last month backfires
A tenant who treats the deposit as the last month’s rent is in default for that month, and the landlord may keep the deposit for unpaid rent, a deduction the statute names. The last month’s rent is a separate payment with its own receipt and interest, so ask that it be applied to the last month in writing.
Keep every receipt
Ask for a written receipt for each payment, with what it is for, and keep it with the lease so you can show later what you paid and when. The deposit receipt must be signed and show the amount, the date and the premises, and a second receipt must show the bank and account number.
If you are a small landlord
Check your lease form against five things before the next tenant signs: whether the total at the start is within the four allowed payments, whether the lease has a late fee before 30 days, whether the deposit goes into a separate Massachusetts account, whether the receipts are signed and whether the statement of condition is ready.
Where to get help
Legal aid and the housing court clerk can explain whether a charge is allowed. Bring the lease, every receipt and the landlord’s written request.
Frequently asked questions
Can a landlord ask for the last month’s rent in Massachusetts?
Yes, at the same rate as the first month, with a receipt and 5% interest.
Can a landlord charge a late fee right away?
No. Not until 30 days after the rent was due.
Can a landlord demand rent in advance during the tenancy?
No more than the current month.
Is there a cap on application fees in Massachusetts?
The statute allows no application fee among the four payments.
What receipt must the landlord give?
A signed receipt for each deposit and a bank receipt within 30 days.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Massachusetts statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Massachusetts attorney.