Security Deposits: What Your Landlord Can Deduct
On August 1, 2025, the Supreme Judicial Court (SJC) clarified what landlords can—and cannot—deduct from a tenant’s security deposit when a lease ends om the case Peebles v. JRK Property Holdings, Inc. (SJC-13702).
In the case, Branda Peebles and other former tenants filed a class action against JRK Property Holdings, alleging that the company violated Massachusetts General Laws Chapter 186, Section 15B. Specifically, they claimed:
- JRK deducted charges from security deposits for “reasonable wear and tear.”
- JRK’s leases required tenants to pay for professional cleaning at move-out, regardless of the unit’s condition.
The SJC ruled that normal wear and tear is not deductible from a tenant’s security deposit. This includes:
- Scuffed walls from furniture
- Light carpet wear in high-traffic areas
- Sun-faded paint
- Minor nail holes from hanging pictures
As the SJC explained, “A dwelling’s condition is expected to deteriorate over time as a tenant moves furniture in and out; cooks in the kitchen; bathes in the bathroom; relies on appliances with limited lifespans; and otherwise makes reasonable use of the property during the tenant’s occupancy under the terms of the lease, including simply by walking on the floors, beside the walls, and through the doorways, day after day. This “gradual deterioration” from ordinary use is the wear and tear for which a tenant is not liable at common law, These are considered the predictable by-products of living in a home. Landlords cannot use the security deposit to “refresh” a unit after a tenant leaves.”
However, damage beyond normal wear and tear—such as pet-torn carpet, burns, broken fixtures, or unauthorized paint—can still be deducted.
The Court also struck down lease provisions that require tenants to pay for professional cleaning or face deductions from the security deposit regardless of whether the need for cleaning was caused by reasonable wear and tear or not. However, the SCJ declined to set a bright-line rule declaring that all security deposit deductions for damage requiring cleaning or painting are deductions for reasonable wear and tear violate the security deposit law.
While this case does provide more insight into the phrase “reasonable wear and tear” as it was previously undefined, the SJC merely extrapolated on some common sense guidelines that landlords and tenants should have already been following. Landlords must give condition statements at the beginning of the lease to document the condition of the unit and damage then existing. Tenants should take photos/videos or otherwise document the condition of the unit when they move in. At move out, Tenants should remove all their belongings and clean the unit. This might seem obvious, the tenants should not leave food in the refrigerator, or fail to clean the stove. Ideally, landlord and tenant should walk through the property together before the keys are surrendered, coming to an agreement on any deductions. That is not always possible, but before deducting from the security deposit, landlords should review the statement of condition from the beginning of the lease and evaluate what has changed in the unit over time. Any deductions made must be in compliance with Massachusetts law, giving estimates or receipts within 30 days under the penalties of perjury.