Landlord Question and Answer Forum

HI there, I got across this statement when filling out tenant's agreement (the landlord must pay the tenant accrued simple interest of 3% per annum) can someone help me understand this, because the bank now days only less than 1% interest.

Jaime, most times this depends on not only the state but the city or county. The interest is really not that much money when you add it up... depending on the security deposit it's usually less then $50 a year. You may want to double check what your county states. Then just do the math.

Posted by karen s, WI on Monday, September 24, 2012

In upstate New York does the number of units per building or number of units per business make any difference toward security deposit interest?

Posted by Tina S, NY on Thursday, November 29, 2012

A landlord must put the security deposit in an escrow account. When returning security deposits of $50 or more, the landlord must include simple interest of 3 percent per year, accrued at six-month intervals from the date the security deposit was paid (1.5 percent every six-month period)…… In most of the United States, the law allows property owners to deduct an annual administration fee of one percent (1%) for management of the tenant’s financial security deposit. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download with data.

Posted by Bob R, CA on Thursday, November 29, 2012

In Wisconsin, landlords are not required to put the deposit in an interest bearing account nor do they have to pay interest on security deposits.

Posted by Dawn A, WI on Thursday, November 29, 2012

@ Dawn...Ditto for CA. To clarify, my response was to Jaime's question.

Posted by Bob R, CA on Friday, November 30, 2012