Security deposit - should I be worried?

[Anonymous]

Moved out of house five weeks ago. Had a friendly relationship with LL and did not damage property/house. Took pictures, etc. Contacted LL twice about anticipated return date of deposit. He has not responded. [We've always corresponded same-day about any house issues, prospective renter showings, etc.]. Under the law he has 45 days to return it but I'm getting anxious - it's a lot of money. He already has a new renter who would've provided a deposit to 'replace' ours. I don't understand why this is happening - we took great care of his house and paid off all outstanding utilities.

[Anonymous]

I wouldn't worry-- I usually don't pay my bills until they are due, and this one obviously is not due yet. Plus, most states have pretty strict rules on security deposits, so worst case scenario is you have to go to small claims or landlord-tenant court, but I wouldn't expect you'd have any problems prevailing if things are as you say.

[Anonymous]

With security deposits, are you supposed to earn interest?

[Anonymous]

If you did do any damage, he's taking photographs and documenting it and doing the repair work to subtract from the deposit. It's a hassle and takes time, but is tightly controlled by law. -- former landlord

[Anonymous]

Anonymous wrote:With security deposits, are you supposed to earn interest?

In MD you do. The LL has to put the security deposit in an interest bearing account and you get the interest in 50$ increments.

[Anonymous]

Anonymous wrote:With security deposits, are you supposed to earn interest?

Va. law makes reference to an obligation to repay with interest though I'm not quite sure how to calculate what "an annual rate equal to four percentage points below the Federal Reserve Board discount rate" would be...

The landlord shall:

1. Accrue interest at an annual rate equal to four percentage points below the Federal Reserve Board discount rate as of January 1 of each year on all property or money held as a security deposit. However, no interest shall be due and payable unless the security deposit has been held by the landlord for a period exceeding 13 months beginning from the commencement date of the rental agreement

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-248.15C1

[Anonymous]

Anonymous wrote:

Anonymous wrote:With security deposits, are you supposed to earn interest?

In MD you do. The LL has to put the security deposit in an interest bearing account and you get the interest in 50$ increments.

sounds stupid, more nanny bullshit

[Anonymous]

Anonymous wrote:With security deposits, are you supposed to earn interest?

Interest? What is interest? Is this the 1980s?

[Anonymous]

Assuming they meant the primary credit rate, it would be .75%-- whatever rate they meant to designate tenants are getting zero for the foreseeable future (which I assume is exactly what they meant to do).

[Anonymous]

Anonymous wrote:If you did do any damage, he's taking photographs and documenting it and doing the repair work to subtract from the deposit. It's a hassle and takes time, but is tightly controlled by law. -- former landlord

Makes sense except we had the house professionally cleaned and had the walls fixed up (from pictures, etc.) - and he moved another tenant into the house within days. Also, just to be clear, we didn't damage the house and I have photos to prove it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:With security deposits, are you supposed to earn interest?

Va. law makes reference to an obligation to repay with interest though I'm not quite sure how to calculate what "an annual rate equal to four percentage points below the Federal Reserve Board discount rate" would be...

The landlord shall:

1. Accrue interest at an annual rate equal to four percentage points below the Federal Reserve Board discount rate as of January 1 of each year on all property or money held as a security deposit. However, no interest shall be due and payable unless the security deposit has been held by the landlord for a period exceeding 13 months beginning from the commencement date of the rental agreement

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-248.15C1

Can someone translate this?

We have rented in VA 3 separate times, and have never been given interest back on our security deposit.

My understanding is that the landlord is supposed to put the deposit in an interest bearing escrow type account, which can earn interest for THEM, not the renter.

Lawyer people?

[Anonymous]

Anonymous wrote:I wouldn't worry-- I usually don't pay my bills until they are due, and this one obviously is not due yet. Plus, most states have pretty strict rules on security deposits, so worst case scenario is you have to go to small claims or landlord-tenant court, but I wouldn't expect you'd have any problems prevailing if things are as you say.

Good point, thanks

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:With security deposits, are you supposed to earn interest?

Va. law makes reference to an obligation to repay with interest though I'm not quite sure how to calculate what "an annual rate equal to four percentage points below the Federal Reserve Board discount rate" would be...

The landlord shall:

1. Accrue interest at an annual rate equal to four percentage points below the Federal Reserve Board discount rate as of January 1 of each year on all property or money held as a security deposit. However, no interest shall be due and payable unless the security deposit has been held by the landlord for a period exceeding 13 months beginning from the commencement date of the rental agreement

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-248.15C1

Can someone translate this?

We have rented in VA 3 separate times, and have never been given interest back on our security deposit.

My understanding is that the landlord is supposed to put the deposit in an interest bearing escrow type account, which can earn interest for THEM, not the renter.

Lawyer people?

short answer is they don't owe you interest (but they might if you start seeing passbook savings rates approach 5%)

[Anonymous]

I thought the landlord was supposed to put the deposit in an interest bearing account and give the tenant the security deposit + interest earned at the end of the tenancy. If there is damage, the landlord gives the tenant the security deposit + interest - cost of repairs and in itemized receipt.

FWIW, the interest that's accumulated on the ($500) security deposit my tenants pay has always been pretty small. I think for the last tenant (who stayed 2-3 years) it was around $5.

[Anonymous]

Anonymous wrote:I thought the landlord was supposed to put the deposit in an interest bearing account and give the tenant the security deposit + interest earned at the end of the tenancy. If there is damage, the landlord gives the tenant the security deposit + interest - cost of repairs and in itemized receipt.

FWIW, the interest that's accumulated on the ($500) security deposit my tenants pay has always been pretty small. I think for the last tenant (who stayed 2-3 years) it was around $5.

the rules vary by state. In some states you may owe interest by law even if you earned none in reality. In some states you may owe whatever interest you earned in reality. In some states you owe no interest (at least in the current interest rate environment).