Can a landlord charge a security deposit for their own labor?

[Ian Maxwell]

Hi All, 

I recently closed my first deal and will be house hacking a two family in Quincy. We took possession of one of the units on 9/1, and found that the previous tenants left several large pieces of furniture behind - a huge three person sofa, love seat and queen box spring. I emailed them and they agreed that we would charge their security deposit the cost of the removing the items. Due to the holiday and college move-ins, we couldn't find pro movers/junk haulers that could help for several days. Since the items were preventing us from moving in our own items, we decided to deal with it ourselves. The house has narrow staircases and it all had to be demolished to get out. (I later learned that they had hoisted the items over the back deck when they moved in five years ago, but I wasn't confident enough in the current condition of the deck to go that route.) Ultimately, it took three of us three hours to demo and move the items out. On top of all that, the unit needed about 10 solid hours of cleaning (by us) to get it up to living condition. 

Now I'm wondering if I can charge the security deposit for our own labor since there are no receipts, and if there is precedent for how much we should charge. Their security deposit was $1750. 

Thanks all for any insight!

Ian

[Dan K.]

Hi @Ian Maxwell,

A long answer to a straightforward question. Quick answer, your friends can charge you, you can't. Long answer -- there is a good chance the former landlord did not properly follow the security deposit law.

Always good to ask. As I'm sure you know, security deposit laws in MA are very strict and judges give landlords very little (if any) leniency.

Since you inherited the tenants, you must first ask if you're entitled to withhold any security deposit. Did the former landlord follow the security deposit law?

Here is a quick list of what's required to prevent treble damages in Massachusetts:

• Provide receipt when receiving the security deposit saying who received it
• Put the security deposit into bank account
  • Must be MA bank
  • account must interest bearing
  • Account is a trust account in tenant's name with landlord as signatory
• Within 30 days of signing the rental agreement, give a receipt that lists
  • The name and location of the bank
  • Amount of the deposit
  • Account number
• Each year
  • Pay interest of 5% or actual interest received
  • Provide an annual statement that lists
  • Name and location of bank, amount of deposit, account number and interest earned
• Within 30 days of the end of tenancy,
  • Pay all interest
  • Provide an itemized list of damages
  • Signed by the landlord and should say “Signed under the pains and penalties of perjury”
  • Receipts, invoices, or photographic evidence are required for each deduction
  • Return the original deposit plus remaining unpaid interest less damages

Recent case law in Massachusetts ruled that landlords cannot charge for their work, since that is the general expectation of a landlord. However, your friends can charge a reasonable amount and bill you.