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We're moving out the end of the month. Our landlord offered to let us use our deposit in exchange for last month's rent (we didn't ask for this but thought it was a nice gesture, so we accepted).
We live in MA. Isn't the deposit supposed to be placed in an interest-bearing account? Should we just forgo the interest since this offer from the landlord is really helping us out this month?
[quote=findingmesomeday;4831165]We're moving out the end of the month. Our landlord offered to let us use our deposit in exchange for last month's rent (we didn't ask for this but thought it was a nice gesture, so we accepted).
We live in MA. Isn't the deposit supposed to be placed in an interest-bearing account? Should we just forgo the interest since this offer from the landlord is really helping us out this month?[/quote
If you signed a lease that stated the money was to be placed in an interest bearing account then yes it would have been. Some places do not do this. It really is only one month depending on you interest rate and your rent amount it may not have been that much anyway. Just make sure yo have enough to put down on another apartment if you decide to rent again or whatever you may do.
We're moving out the end of the month. Our landlord offered to let us use our deposit in exchange for last month's rent (we didn't ask for this but thought it was a nice gesture, so we accepted).
We live in MA. Isn't the deposit supposed to be placed in an interest-bearing account? Should we just forgo the interest since this offer from the landlord is really helping us out this month?[/quote
If you signed a lease that stated the money was to be placed in an interest bearing account then yes it would have been. Some places do not do this. It really is only one month depending on you interest rate and your rent amount it may not have been that much anyway. Just make sure yo have enough to put down on another apartment if you decide to rent again or whatever you may do.
Thanks. Honestly, I'm inclined not to make a big deal out of it since the unexpected offer to use our deposit money for last month's rent (not a small amount BTW---this *is* MA, it is a 5 bed house and we live in an upscale town...).
We'd planned to relocate out of state, hence the rental, but we just couldn't get our act together in time. We did manage to sell our house 18 mos ago, before everything came crashing down, so thank goodness for small favors. We are renting a smaller place in the same town--and it uses GAS heat vs. oil. I don't relish the thought of moving again but those oil bills just about killed us and we really don't need all this room. We'll be saving $500/mo as of Sept 1.
So to your point, I'll have to check the lease terms. It is the standard MA lease. But even if the money was supposed to be placed in an interest bearing account, this offer is saving us a lot of headaches. We had to come up with a deposit about a month ago for the new place and that made things very tight that month! Add to the stress: husband is now unemployed.
In some states the security deposit is not required to be escrowed and earning interest until after the lease in renewed (into the second year of a rental).
If it makes both parties happy in the long run then I'd just do it...
In Maryland (it used to be...) the landlord had to keep the deposits in an interest-bearing account, separate from all other money. But, he also doesn't have to return it for 45 days, and after an inspection. Sounds like your landlord is being congenial, but it still would be nice to have this agreement (as all agreements) in writing, in case someone changes his mind down the road.
Take the offer and forget the interest. it can't be that much and your saving having to put out the money so you have more money on hand for the move. It's a trade off.
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