The Guide to Rent Escrow in Massachusetts
What is rent escrow?
Rent escrow is a rent withholding tool that tenants can use if their landlord refuses to repair or remedy housing and/or lease violations. Instead of sending their rent to the landlord, they can send it to an escrow account held by a housing court administrator.
Here is the rent escrow process
Tenant notifies the landlord and/or housing inspector of violations in writing.
If the landlord ignores the notice, after 14 days the tenant pays a filing fee with the courts along with their landlord’s information, a copy of their written violation notice, and the estimated price of repairs.
The tenant deposits their rent into an escrow account, and continues to do so every month as long as the process continues.
The court sets a hearing date 10-14 days after the initial deposit and notifies the landlord.
If repairs are completed before the hearing date, the rent in the account is released to the landlord and the hearing is canceled.
If the tenant proves that the landlord is in violation, the court will force the landlord to make the repairs through such means as requiring them to use the escrow funds to pay for it, eliminating or reducing future rent, and imposing fines, among others.
If the tenant cannot prove that the landlord is in violation, the rent in escrow will be released to the landlord.
Is rent escrow legal in Massachusetts?
Massachusetts landlord-tenant law does not include rent escrow, and in fact allows tenants to withhold rent for violations as long they have notified their landlord of the violations in writing. Tenants may also deduct rent to make emergency repairs themselves if an inspection agency certifies the violations, notifies the landlord, and the landlord does not substantially complete the necessary repairs within 14 days. However, there are currently two proposed bills that have been introduced in the state legislature - H.1677 and H.1533 - both of which would, if they become law, make rent escrow the standard process for rent withholding in Massachusetts.
What to do if a tenant plans to withhold rent
If a tenant plans to withhold rent, the absolute best thing to do is remedy their complaints. If you are a landlord who is in real violation of housing laws, it will be more expensive in the long run to not repair the problem as soon as possible. If your tenant takes you to court and wins, it will be additional time and energy for the same result. Even if the court rules in your favor, the eviction process is lengthy and expensive, so it’s in your best interest to avoid it unless you have no other options.
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