Rent Escrow in Massachusetts

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Rent escrow refers to the holding of rent money while a legal matter is ongoing. The questions most commonly asked about rent escrow in Massachusetts are when, and how, it is allowed.

Rent Escrow Before An Eviction Case

Without a court order, there is no requirement for tenants to escrow rent. This is most relevant when tenants are withholding rent from a landlord due to allegations that a landlord is not properly maintaining a rental unit. While a tenant is allowed to withhold rent in such cases, a tenant does not have to hold this rent money in a separate bank account.

In practice, however, any tenant who withholds rent should escrow this money. If the matter ends up in court, a tenant will inevitably be asked where the owed money went. A tenant who cannot account for such funds can (and likely will) lose credibility with the court.

Rent Escrow During An Eviction Case

If an eviction case has started, a court has the authority to require rent escrow from a tenant. This, however, will not happen automatically. When making such a request, landlords need to articulate why a tenant should be escrowing rent. Without providing a supporting basis, such requests will often not be successful in most courts.

Per the seminal case on this matter, Davis v. Comerford, a court must consider the following factors for such a request:

  • A landlord’s entitlement to use-and-occupancy funds from a tenant
  • The amount of rent due
  • The landlord’s monthly obligations
  • Whether the landlord is facing foreclosure
  • Whether the tenant has any viable defenses and counterclaims against the landlord

Escrowing of rent is most common in a case where a tenant has requested a jury trial; a matter which will inevitably delay the resolution of such a case.

The benefit of requiring the escrowing of rent, of course, is that the money is available at the resolution of the case. Moreover, as a practical matter, such orders often prompt both landlords and tenants to resolve these cases sooner than later.

Final Thoughts

If you need assistance with a landlord-tenant matter, contact me for a consultation.