Interest on Security Deposit : ezLandlordForms

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Holly S

started a topic almost 13 years ago

Do I need to put my tenant's security deposit in an interest bearing account if the building in which they preside has less than 6 units/apartments? I've read that I don't, but I'd like to be certain. Also, is there a law or code by which this is known? It would be helpful to cite to my tenants who believe they are entitled to interest back on their security deposits.

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Bob R

said almost 13 years ago

Do a Google search for Landlord/Tenant laws in your state

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Edgar J

said over 12 years ago

As per my knowledge, law does not require landlords to pay interest on security deposits. However there are some rent controlled cites in California such as los angeles (under the Los Angeles Rent Stabilization Ordinance) that do require payment of interest.

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Samantha P

said over 12 years ago

Massachusetts requires that security deposits need to be in a separate interest bearing account. However if you collected the last month's rent at the time of move in, that does not have to be put in an account or earn interest. You should check the laws for your state as each state is different.