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March 18, 2013

Renting a Home

Security Deposits

Does the landlord have to pay interest on deposits?

Most states have statutes requiring the landlord to pay interest on the security deposit. In those states, the landlord cannot avoid paying interest simply because a lease says the deposit does not earn interest.

Some landlords try to get around this by calling the security deposit "prepaid rent." But some laws say prepaid rent earns interest as well.

>>What is a security deposit?
>> What does the lease say about security deposits?
>>Are deposits for cleaning, pets, parking, or garage door openers considered security deposits and, thus, refundable?
>>Must landlords hold security deposits in a separate bank account apart from other assets?
>>Does the landlord have to pay interest on deposits?
>>Under what conditions does the landlord owe a refund of the security deposit?
>>What should the tenant do if the landlord does not refund the deposit or refunds what the tenant believes is too little?

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