Second opinion] returning last month's rent in

This is what I see, there is no question posted:.

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Customer:returning last month's rent in Massahcusetts

Lawyer's Assistant:What steps have been taken so far? Has any paperwork been prepared or filed?

Customer:no she wanted to end lease early, said May 1 or June 1, I was able to get another tenant for May 1, and asked current tenant to leave the key and remove a couple of bags she has left there. She said she will give me the key when I return her last months rent

Lawyer's Assistant:Where is the property located?

Unfortunately no, if they choose to hold onto the key, then they are still in legal possession and on May 1, they owe another month's rent, which you are holding as prepaid.

And you can tell the tenant that if their actions prevent the new tenant from being able to move in, the deal is off and you will have to sue them for the remaining months of rent under a breach of contract claim starting June 1 when you advertise it for rent.

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She thinks she is in a position of authority but she is very much mistaken.

If they don't comply and return legal possession with the key, they are breaking the deal..

Then that is up to you whether you want to refund it and get the key and be able to rent to the new tenant or not.

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Technically if you have agreed to end the lease early, if she complies, then you don't have any grounds to retain prepaid rent.... but you have up to 30 days to refund any deposit

Prepaid rent is not deposit.. they are entirely different.

Deadline for Returning Security Deposit: 30 days after occupancy (MGL c.186 § 15B(3)(a))

Prepaid last month's rent is not deposit... Deposit money is for damages and other costs after the tenancy is over and the tenant has vacated.

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Prepaid rent is for the tenant's last month there, regardless of when that is.

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You are confusing prepaid rent with security deposit...

So as I mentioned, her demands are actually legitimate for the prepaid rent only..... for the actual security deposit, which is an entirely different thing... you have 30 days,.

I posted the Mass security deposit law. Were you aware of a different law that specifically addresses prepaid rent refunds?

As an aside, in addition to being an attorney, I have also been a landlord for over 34 years...so I am pretty familiar with the landlord tenant laws..

So let me try to be crystal clear... If you have a $400 deposit and a $500 prepaid last month's rent... and you agreed to end the tenancy with the tenant for April 30... and they have already paid April rent... you have to return the $500 prepaid last month's rent when the tenant returns the keys on April 30. You have 30 days from that date to refund the $400 deposit or charge against it if there are actual damages, cleaning costs, or other charges.

Did you have any other questions about this situation I can help with?

No worries.. I tend to post long posts.. And no, interest is only for Security Deposits..

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(3) (a) Any security deposit received by such lessor shall be held in a separate, interest-bearing account in a bank, located within the commonwealth under such terms as will place such deposit beyond the claim of creditors of the lessor, including a foreclosing mortgagee or trustee in bankruptcy, and as will provide for its transfer to a subsequent owner of said property. A receipt shall be given to the tenant within thirty days after such deposit is received by the lessor which receipt shall indicate the name and location of the bank in which the security deposit has been deposited and the amount and account number of said deposit. Failure to comply with this paragraph shall entitle the tenant to immediate return of the security deposit.

That interest is for Security Deposits... Not for prepaid rent.

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According to the Mass.gov site: If the last month's rent is not held in a bank account, the landlord must pay 5% interest per year.

So it is a different amount for deposits and for prepaid rent.

This is a pretty good resource for a quick view of the rules: https://www.mass.gov/info-details/security-deposits-and-last-months-rent#overview-

Yep, that is the exact same link I just posted for you..

Yes, at a different rate than a security deposit if you didn't deposit it into an interest bearing account....5% annually.