 Mass Security Deposit (by Johnny B. [MA]) Jan 18, 2018 10:01 AM
 Mass Security Deposit (by Landlord ofthe Flies [TX]) Jan 18, 2018 10:36 AM
Mass Security Deposit (by S i d [MO]) Jan 18, 2018 11:16 AM
Mass Security Deposit (by Steve [MA]) Jan 18, 2018 11:24 AM
Mass Security Deposit (by AllyM [NJ]) Jan 18, 2018 12:17 PM
Mass Security Deposit (by Lynn [MA]) Jan 18, 2018 12:21 PM
Mass Security Deposit (by Johnny B. [MA]) Jan 18, 2018 12:41 PM
Mass Security Deposit (by NC INVESTOR [NC]) Jan 21, 2018 3:14 PM
Mass Security Deposit (by Johnny B. [MA]) Jan 21, 2018 4:00 PM
Mass Security Deposit (by Johnny B. [MA]) Posted on: Jan 18, 2018 10:01 AM
Message:
In accordance with the Massachusetts Security Deposit law, the security deposit “shall not be subject to the claims of any creditor of the lessor or of the lessor's successor in interest, including a foreclosing mortgagee or trustee in bankruptcy”. I have always maintained each security deposit in its own segregated interest bearing account, but I’m not sure that is sufficient given the way the law is written. To be in full compliance, is the only option the official landlord tenant account? If so, do you typically have the tenant complete a W9 or do you skip that part? --107.77.xx.xxx |
Mass Security Deposit (by Landlord ofthe Flies [TX]) Posted on: Jan 18, 2018 10:36 AM
Message:
If I read your quote correctly, it sounds like any account you own would not work because it could be garnished. Maybe you should sock it away in cash and hide it.
I'd consult with a lawyer. --108.69.xxx.xxx |
Mass Security Deposit (by S i d [MO]) Posted on: Jan 18, 2018 11:16 AM
Message:
I think you're okay as is. The way I read the law is the creditors cannot go after that account, even if they could possibly find out where it is, which is unlikely given they don't know who you are or where you bank. If they laid hands on it, they'd be in trouble.
In other words, I don't read the phrase "shall not be subject to the claims of any creditor" to mean that you have to put is somewhere that is impossible to garnishee...merely that they (the creditors) are supposed to keep their hands off it, and if the try to take it they can get in heaps of trouble.
But I'm not a lawyer, so what LLOTF said may be best. --173.17.xx.xx |
Mass Security Deposit (by Steve [MA]) Posted on: Jan 18, 2018 11:24 AM
Message:
If you are putting the SD with just your name on it you are in violation of the MA SD law.
All of mine are in interest bearing accounts at either a local bank or credit union. When we set them up each tenant has to fill out W-9 paperwork. I have the accounts set up so the tenant can not withdraw the funds without my knowledge & approval. At the end of the year the tenant receives a statement from the bank showing the account balance & interest earned. --72.93.xxx.xxx |
Mass Security Deposit (by AllyM [NJ]) Posted on: Jan 18, 2018 12:17 PM
Message:
Here in NJ my rent security accts are at BAnk of America and each is separate as per law. The tenant completes a W9 that the bank keeps on file. Give them a copy of the statement at the end of the year so they can include the minimal interest on their tax return, generally less that five bucks. --73.33.xxx.xxx |
Mass Security Deposit (by Lynn [MA]) Posted on: Jan 18, 2018 12:21 PM
Message:
I also require the W9. In addition to the yearly statement of the amount interest earned, you need to pay them the amount interest earned or deduct from the next rental payment. --38.142.xxx.xxx |
Mass Security Deposit (by Johnny B. [MA]) Posted on: Jan 18, 2018 12:41 PM
Message:
Thank you all; this answers my question. Much appreciated. --107.77.xx.xx |
Mass Security Deposit (by NC INVESTOR [NC]) Posted on: Jan 21, 2018 3:14 PM
Message:
Why can you put them all in a single trust account in the name of your company: i.e. XYZ Trust. The bank needs to know that is an "escrow trust" It would be protected against everything as list in the MA SD law. --71.75.xx.xx |
Mass Security Deposit (by Johnny B. [MA]) Posted on: Jan 21, 2018 4:00 PM
Message:
NC Investor - Using a single account would make calculating the annual interest on each security deposit much harder. In Mass we have to pay tenants out the interest annually, which is somewhat pointless given that it’s usually fractions of a dollar. --24.147.xx.xxx |
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