Re: Tenant demands interest on Security Deposit

Re: Tenant demands interest on Security Deposit by Kristina (CA) on June 16, 2012 @19:44

Charge her for whatever late fee and just give her the interest.

Think of it this way...do you think it's fair for landlords to be holding all this $$$ to invest and profit from? I know interest if very low now but it is respectful to not take the dividends from that money. It's a nice thing to do.

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Re: Tenant demands interest on Security Deposit by Douglas (KS) on June 16, 2012 @23:54	[ Reply ]

Many states you can not hold and profit from Security. You need to put it into a separate account and at 0.25% interest, legally in many states, there is nothing left required to tenant.

Re: Tenant demands interest on Security Deposit by OK-LL on June 17, 2012 @10:40	[ Reply ]

"Think of it this way...do you think it's fair for landlords to be holding all this $$$ to invest and profit from?" The tenant has control of my property worth tens of thousands of dollars or more--! Of course it is fair for LL to be holding what amounts to typically less than 3% of the value of my property while they possess the property, as security against potential damage by the tenants. Most states require this SD be placed in an account separate from LL's money and preserved in its entirety until the end of the rental relationship, not to be used by the LL "to invest and profit from." It sounds like you need to educate yourself on the proper purpose and use of the SD under your state law, whether you are a tenant or a LL.

Re: Tenant demands interest on Security Deposit by Anonymous (Connecticut) on June 18, 2012 @07:19	[ Reply ]

The tenant used the entire security deposit in damages in less than three years she has occupied the house. Her asking for interest earn on SD is her way of taking attention off the fact that she owes late fees or to reduces it.

Re: Tenant demands interest on Security Deposit by Anonymous on June 18, 2012 @11:16	[ Reply ]

How did the tenant use the security deposit without your knowledge?

Re: Tenant demands interest on Security Deposit by OK-LL on June 18, 2012 @11:50	[ Reply ]

If you have allowed the tenant to have credit against their SD for money owed on repairs, you are doing it wrong! My instruction to tenants at the beginning of the lease is, if you need a repair of any kind, call me and I will repair it; if the problem is caused by normal wear & tear or general aging (such as a 15-year old refrigerator dying) I will pay for the repair, but if the problem is caused by your misuse or neglect I will send you the repair bill to be paid by you to me with your next month's rent. Money received goes toward the oldest charge first, which means the repair is paid first and whatever is left goes toward the rent. Not enough to cover it all? The rent is short and we serve the p/q and move to eviction ASAP. It isn't worth keeping this type of tenant -- there are too many tenant fish in the sea to worry about the ones who can't keep up financially!