Do Landlords Pay Tenants Interest On Security Deposits?
Yes. Landlords must pay tenants interest on security deposits of at least the average commercial banks savings deposit rate as annually determined and published by the Banking Commissioner. Interest must be paid annually on the anniversary date of a tenancy either directly to tenants or as a credit towards the next month’s rent. [ Interest rate information ] Interest Calculation Table The following Excel Worksheet was designed to provide assistance in determining the interest that is owed on rental security deposits: Interest Calculation Table (Excel Worksheet, 25 KB) What If A Tenant Is Late Paying Rent? Tenants forfeit interest on their security deposits for any months when they are more than ten days late paying their rent. The only exception is when a tenant’s rental agreement already contains a late charge for overdue rental payments. Before moving, inspect your apartment with the landlord and note its condition. How Can Tenants Ensure Their Security Deposits Will Be Returned? Ten
