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My father has a 3 family in Massachusetts and has been

renting one unit to a...
My father has a 3 family in Massachusetts and has been renting one unit to a woman for the past 21 years. Recently, he has given her notice in order to do extensive renovations. For whatever reason, he took a security deposit from her when she moved in 21 years ago without putting it in an escrow account. She's only paid $750 monthly rent all of these years but because he failed to put the deposit in escrow it looks like he will have to return 5% of the annual rent for every year she has been there. Do I understand that correctly? And if so, would it be owed for all 21 years or just from the point when the 5% law began?. Thank you.
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Answered in 6 minutes by:
3/26/2018
Thelawman2
Thelawman2, Lawyer
Category: Landlord-Tenant
Satisfied Customers: 2,210
Experience: Attorney-at-Law
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Hello, my name is ***** ***** I will be helping you today.

The law is that he will have to return 5% of the security deposit, not 5% of the annual rent. How much did he take when the woman first moved in?

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Customer reply replied 3 months ago
Hello Jim. Thank you for responding. When she moved in 1996, the rent was actually $575. That was the amount of the deposit. My father eventually raised the rent to $750.

So it would be 5% of the 575 for 21 years. Which comes out to just over $600. The law was enacted prior to 1996 so it would be owed for the entire 21 years.

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