interest on lease security deposit (apartments, how much, attorney)

[irachess]

I would like to receive the interest rate due on tenant's security deposits from 1999 to the current date.

Banks or the library were unable to help me

[Magic78]

Legally, I think you were supposed to put the money into an interest bearing account untouched over the course of the lease. It sounds like you didn't do that and are now trying make it up, which is probably totally fine. However, now it will be impossible to know exactly how much you owe the tenant. I would look at average interest rates on a simple savings account for each year, then figure it out from that point. Just be careful that the tenant doesn't suspect any issues.

[joe moving]

they do not say what the interest has to be. it could be 0.1%

[ocnjgirl]

It depends what bank the landlord put the money in, which he should be able to tell you. It is not going to be very much, that 0.1% is probably close to the mark, bank interest rates for savings accounts are notoriously low.

[Goldendoodle1969]

It's almost nothing(like $20 for every $2,000 principle). Here is a good tool to use. .1% should be fine to use as interest rate.

Compound Interest Calculator

[mboy]

If they have not paid you any interest, then you are entitled to use that security deposit x 7% compounded interest on future rent payments (you must give the landlord 30 days written notice) and they can not require an security deposit from you after that.

LSNJLAW - D: Chapter 3: Security Deposits

[Goldendoodle1969]

Originally Posted by mboy

If they have not paid you any interest, then you are entitled to use that security deposit x 7% compounded interest on future rent payments (you must give the landlord 30 days written notice) and they can not require an security deposit from you after that.

LSNJLAW - D: Chapter 3: Security Deposits

WOW! That's great I didn't know that provision existed. Great find. i would read the exceptions carefully since if they do put a bank address it is sufficient notice and if you never verified the deposit you are still up a creek.

If you are the landlord and rent fewer than 10 apartments I would check with a RE Attorney since there may be a loophole for you. Either way the most it looks like you'd be out would be a month's rent( interest) and the security deposit.