The regulations on security deposit in Massachusetts has led me to not use security deposits. I also don’t use a lease. A tenant can come and go from month to month. I only require first and last months rent.
Just to be sure. Is this a smart name for what others call a 'deposit'?
I looked this up and Massachusetts is actually extremely strange that they count "last months rent" separate from "security deposit." In my state any money required to be collected past the first month's rent is legally considered a security deposit and required to be treated as one and subject to legal limits on security deposits. Which makes sense.
It's logical not to bother with the requirements of an extra security deposit if you can go ahead and collect two months rent up front without calling the extra a deposit. In my state the standard is also to collect two months rent up front - because the standard security deposit is a month's rent.
A tenant who has $1,000 in upaid rent and $0 is damage is no different than a tenant who has $1,000 in damage and no unpaid rent. The security deposit can be used to cover either.
I will see how this works out.
Squatters are my biggest fear. I feel it is a justified fear. I also am happy to offer anyone a lease that requests one. I don't want to mindlessly use one. Live and learn they say:)
https://www.mass.gov/guides/the-attorney-generals-guide-to-l...
This was the document I used to shape my thinking and since I have more than 5 units (8 units total) I'm inspected by my town officials every 2 years to assure the livability.
I see the whole relationship as reciprocal and hope to avoid evictions. I do no credit checks and I do my own internet research. I place a lot of value on the personal interactions and so far I have had good fortune.