Interest on partial returned deposit : ezLandlordForms

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Interest on partial returned deposit

Kathy H

started a topic over 6 years ago

Does tenant receive interest for the full deposit even if party is withheld? Deposit $1500 Two years residency $300 withheld Interest rate 1% per year Does tenant receive interest of $30 or $24?

2 Comments

Scott H

said over 6 years ago

They get the full interest. It is their money you are holding on to and all of it is collecting interest the whole time. Its not until they move-out and you deduct for the damages does the money become yours. So $1500 at 1% earns around 150 the first year and 151.50 the second.(compound interest). So the total in the account would 1531.50. You subtract the $300 for damages and they get 1231.50 back.

Sandra P

said over 6 years ago

I have always returned all the interest even if I have had to withhold the entire deposit for damages. There is no clear wording in the MN statute, so I itemize damages and always pay back the interest. Not worth an fighting over!