Where Should the Landlord Hold the Security Deposit?
The landlord must keep the security deposit in an escrow account in a Connecticut bank. How Large A Security Deposit Can A Landlord Require? Tenants under the age of 62 can be required to pay up to two month’s rent as a security deposit; tenants who are 62 or older may not be charged more than one month’s rent. Do Landlords Pay Tenants Interest On Security Deposits? Yes. Landlords must pay tenants interest on security deposits. The interest rate changes annually as determined by the State Banking Commissioner. On a yearly basis landlords must either pay all accrued interest directly to their tenants, or apply the interest as a credit against the tenants’ rent for the first month of the new lease year. What If A Tenant Is Late Paying Rent? Tenants forfeit interest on their security deposits for any month in which 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. How Can T
