Landlord Question and Answer Forum
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?
Kathy H, on Wednesday, July 25, 2018
RE: Interest on partial returned deposit
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!
Posted by
Sandra P, MN
on
Thursday, July 26, 2018
RE: Interest on partial returned deposit
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.
Posted by
Scott H, VA
on
Friday, July 27, 2018
Author:
Beverly S, NC
Updated:
03/28/2016
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Emmett J, GA
Updated:
03/03/2016
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Howard P, CA
Updated:
09/06/2018
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Laura D, AZ
Updated:
06/29/2011
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Kimberly B, NC
Updated:
11/15/2012
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