Your Landlord Might Owe You Interest On Your Security Deposit

[DCAllAfrican]

I know this is true for Maryland. Read below. For other states - http://www.google.com/sea...ial&client=firefox-a

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http://www.uslandlord.com...ms/security_deposit.html

SECURITY DEPOSITS

The laws about security deposits for residential rental housing (including mobile homes) are often misunderstood by both tenants and landlords. This covers the main points about security deposits and may help you avoid problems with your tenants or landlord. This publication is meant as a general national guideline. There may be laws that are state specific. Please check with your state department or legal counseling before relying upon any of this information.

• A security deposit is any money paid to a landlord by a tenant to protect the landlord against unpaid rent or damages to the leased premises.
• Security deposits can include the last month's rent, if paid at the beginning of the lease.
• Security deposits may include "pet deposits" and other special deposits against damages.

Maximum Deposit Amount
The security deposit may not be more than two months rent. If a landlord overcharges, the tenant has up to two years after the lease ends to sue the landlord for up to three times the extra amount charged, plus attorney's fees.

Written Receipts

• The landlord must give a written receipt for the security deposit. The receipt can be part of a written lease.
• The receipt must tell the tenant that the tenant has a right to receive a written list of existing damages if the tenant requests this list in writing within 15 days of moving into the property.
• If a landlord does not provide this list, the tenant can sue the landlord for up to three times the amount of the security deposit.

Separate Account and Interest on Deposits

• Security deposits must be kept in a separate interest-bearing account in Maryland, and deposited within 30 days of receipt.
• Simple interest of 4% per year, accrued at 6-month intervals, must be paid on security deposits of $50 or more. (Example: a $100 security deposit earns $4 after 12 months, $6 after 18 months, $8 after 24 months)
• If the property is sold or transferred, the new landlord is responsible for obtaining the deposit (and any accrued interest) from previous owner and opening a separate account for the deposit as stated above.

Moving Notice and Inspection

• When the tenant pays the security deposit, the landlord must notify the tenant in writing that the tenant has the right to be present at landlord's inspection of the property for damages when the tenant moves out.
• The tenant must notify the landlord by certified mail at least 15 days before moving of the tenant's move out date and the tenant's new address.
• The inspection must be within five days before or five days after the moving date.

Return of Deposits

• Landlords may keep part or all of a security deposit for unpaid rent or the actual cost of repairing damage caused by the tenant, tenant's family or guests. Ordinary wear and tear is not damage.
• Within 45 days after the tenant moves out, the landlord must send the tenant a written list of damages and the actual amount spent by the landlord to repair damage to the property.
• The landlord may not keep any part of the security deposit unless they notify the tenant of the charges.
• Within 45 days after the tenant moves out, the landlord must return the security deposit, plus 4% interest, minus any unpaid rent or cost of damages.
• If the landlord does not return the security deposit within 45 days, the tenant can sue the landlord for three times the amount wrongly withheld by the landlord, plus attorney's fees.

Eviction or Abandonment

• If a tenant has been evicted, ejected or has abandoned the property before the lease ends, the security deposit may be returned when:
• Within 45 days after moving, the tenant mails the landlord a letter with the tenant's present address requesting return of the security deposit.
• The landlord has 45 days to mail the tenant a list of damages and costs.
• The security deposit, less damages, must be returned within 45 days of receiving the tenant's notice.

No Waiver of RightsNo provisions of the security deposit laws can be waived, either orally or in writing.

Landlord Checklist

• Maximum security deposit equals two months rent
• Give written receipts for security deposits.
• Provide tenant with list of existing damages
• Keep separate accounts for security deposit
• Pay 4% simple interest on security deposits
• Provide list of damages and amount to be withheld in 45 days from tenant move out
• Return security deposits with interest in 45 days from tenant move out

Tenant Checklist

• Provide landlord with list of existing damages at move in
• Must request damage inspection in writing with move out notice

Copyright 2000 US Landlord. All rights reserved. Visit www.USLandlord.com for tenant credit reports, rental forms and more.

 

[kingtre]

Yea same in MA- my complex had 5% interest...i was like damn can i give you some more....nobody is giving 5 anymore my ING dropped crazy

 

[kdawg]

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest atthe standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to getthat all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

 

[mcl0vin]

Originally Posted by kdawg

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest at the standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to get that all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

What the hell u renting that u gotta drop damn near 12k on a security deposit

 

[kingtre]

Originally Posted by McL0vin

Originally Posted by kdawg

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest at the standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to get that all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

What the hell u renting that u gotta drop damn near 12k on a security deposit

he said office so assuming commercial - or he set himself up in somecorner office penthouse in a downtown highrise for like 6k a month

 

[mexicansoul]

hes an optometrist. Not everyone on NT hood rich

 

[kdawg]

Originally Posted by McL0vin

Originally Posted by kdawg

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest at the standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to get that all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

What the hell u renting that u gotta drop damn near 12k on a security deposit

Yeah, my rent was about 22k a year - because it was a new business and the lease went to offers as it was a popular spot I put in my offer with abig deposit (6 months) to minimize the risk to the landlord.

My rent went up a little after 5 years but she agreed to a much smaller deposit as I've been a good tenant.

Commercial leasing is just a scam though - she's making a ton of money just from me being there. I hope to buy a new place in a few years. Just have to seeif something in the area comes up.

 

[mexicansoul]

Originally Posted by kdawg

Originally Posted by McL0vin

Originally Posted by kdawg

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest at the standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to get that all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

What the hell u renting that u gotta drop damn near 12k on a security deposit

Yeah, my rent was about 22k a year - because it was a new business and the lease went to offers as it was a popular spot I put in my offer with a big deposit (6 months) to minimize the risk to the landlord.

My rent went up a little after 5 years but she agreed to a much smaller deposit as I've been a good tenant.

Commercial leasing is just a scam though - she's making a ton of money just from me being there. I hope to buy a new place in a few years. Just have to see if something in the area comes up.

Is there any vacant land near you? If you have some investors or group of optometrists that are willing to develop a lot you'd guys would bepretty well off.

 

[a thrilla]

True story!

 

[ricky fontaine]

Originally Posted by kdawg

Originally Posted by McL0vin

Originally Posted by kdawg

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest at the standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to get that all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

What the hell u renting that u gotta drop damn near 12k on a security deposit

Yeah, my rent was about 22k a year - because it was a new business and the lease went to offers as it was a popular spot I put in my offer with a big deposit (6 months) to minimize the risk to the landlord.

My rent went up a little after 5 years but she agreed to a much smaller deposit as I've been a good tenant.

Commercial leasing is just a scam though - she's making a ton of money just from me being there. I hope to buy a new place in a few years. Just have to see if something in the area comes up.

oh snap i thought you were talking about a house or apartment at first

 

[thunderchunk69]

anyone that holds your money legally is supposed to pay interest.
if you overpay your cellphone bill and close it out, they send you a check with interest.. even though its crappy.

 

[kdawg]

Originally Posted by MexicanSoul

Originally Posted by kdawg

Originally Posted by McL0vin

Originally Posted by kdawg

I got that - from my office. I gave a $11,625 deposit and I got about $15,000 back a few months ago. I got it written into the contract that I got interest at the standard rate.

My new deposit is only $4,400 (because I've been here 5 years now they think they can trust me) so I won't get as much next time but it was nice to get that all in a lump.

Most landlords will obviously try not to pay interest if they can help it.

What the hell u renting that u gotta drop damn near 12k on a security deposit

Yeah, my rent was about 22k a year - because it was a new business and the lease went to offers as it was a popular spot I put in my offer with a big deposit (6 months) to minimize the risk to the landlord.

My rent went up a little after 5 years but she agreed to a much smaller deposit as I've been a good tenant.

Commercial leasing is just a scam though - she's making a ton of money just from me being there. I hope to buy a new place in a few years. Just have to see if something in the area comes up.

Is there any vacant land near you? If you have some investors or group of optometrists that are willing to develop a lot you'd guys would be pretty well off.

No - and land round here is a fortune.

My grand plan is to have a sort of multidisciplinary professional building - with something like a vet, a physiotherapist, a dentist... renting from me - sobasically I would own a big building and not be paying anything myself.

That's at least a few years away though.