Landlord Question and Answer Forum

Forum / Landlord and Real Estate News / Interest on Security Deposit
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.
Holly S, NY on Thursday, February 16, 2012
RE: Interest on Security Deposit
Do a Google search for Landlord/Tenant laws in your state
Posted by Bob R, CA on Thursday, February 16, 2012
RE: Interest on Security Deposit
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.
Posted by Edgar J, CA on Tuesday, March 27, 2012
RE: Interest on Security Deposit
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.
Posted by Samantha P, MA on Tuesday, March 27, 2012
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