Has my security deposit aquired interest since I have been living in the apartment 10 years?
Full Question:
I am going to be moving out of my apartment that I have resided in for 10 years. I would like to know if my security deposit I paid should accumulate interest? If so, at what rate? Is this a law that a landlord has to pay interest after so many years?
05/09/2007 |
Category: Landlord Ten... ยป Security Dep... |
State: Pennsylvania |
#4303
Answer:
The Landlord Tenant Act requires that interest be paid on security deposits held over two years.
After taking out damages and unpaid rent, a landlord or property owner must send its tenants the list of damages and/or the full or partial security deposit no later than 30 days after the lease ends or when the landlord accepts the tentants' keys to vacate the premises early, whichever occurs first. The law requires landlords to pay twice the amount of the security deposit if they fail to provide consumers with the list of damages along with any refund due.
The following is a PA statute:
Section 250.511b. Interest on escrow funds held more than two years
(a) Except as otherwise provided in this section, all funds over one hundred
dollars ($100) deposited with a lessor to secure the execution of a rental agreement on
residential property in accordance with section 511.1 and pursuant to any lease newly 8
executed or reexecuted after the effective date of this act shall be deposited in an escrow
account of an institution regulated by the Federal Reserve Board, the Federal Home Loan
Bank Board, Comptroller of the Currency, or the Pennsylvania Department of Banking. When
any funds are deposited in any escrow account, interest-bearing or noninterest-bearing, the
lessor shall thereupon notify in writing each of the tenants making any such deposit, giving the
name and address of the banking institution in which such deposits are held, and the amount
of such deposits.
(b) Whenever any money is required to be deposited in an interest-bearing
escrow savings account, in accordance with section 511.1, then the lessor shall be entitled
to receive as administrative expenses, a sum equivalent to one per cent per annum upon the
security money so deposited, which shall be in lieu of all other administrative and custodial
expenses. The balance of the interest paid shall be the money of the tenant making the
deposit and will be paid to said tenant annually upon the anniversary date of the
commencement of his lease.
(c) The provisions of this section shall apply only after the second anniversary
of the deposit of escrow funds.
Section 250.511c. Bond in lieu of escrowing
Every landlord subject to the provisions of this act may, in lieu of depositing escrow
funds, guarantee that any escrow funds, less cost of necessary repairs, including interest
thereon, shall be returned to the tenant upon termination of the lease, or on surrender and
acceptance of the leasehold premises. The guarantee of repayment of said escrow funds
shall be secured by a good and sufficient guarantee bond issued by a bonding company
authorized to do business in Pennsylvania.
Section 250.512. Recovery of improperly held escrow funds
(a) Every landlord shall within thirty days of termination of a lease or upon
surrender and acceptance of the leasehold premises, whichever first occurs, provide a tenant
with a written list of any damages to the leasehold premises for which the landlord claims the
tenant is liable. Delivery of the list shall be accompanied by payment of the difference
between any sum deposited in escrow, including any unpaid interest thereon, for the payment
of damages to the leasehold premises and the actual amount of damages to the leasehold
premises caused by the tenant. Nothing in this section shall preclude the landlord from
refusing to return the escrow fund, including any unpaid interest thereon, for nonpayment of
rent or for the breach of any other condition in the lease by the tenant.
(b) Any landlord who fails to provide a written list within thirty days as required
in subsection (a), above, shall forfeit all rights to withhold any portion of sums held in escrow,
including any unpaid interest thereon, or to bring suit against the tenant for damages to the
leasehold premises.
(c) If the landlord fails to pay the tenant the difference between the sum
deposited, including any unpaid interest thereon, and the actual damages to the leasehold
premises caused by the tenant within thirty days after termination of the lease or surrender and
acceptance of the leasehold premises, the landlord shall be liable in assumpsit to double the
amount by which the sum deposited in escrow, including any unpaid interest thereon, exceeds
the actual damages to the leasehold premises caused by the tenant as determined by any
court of record or court not of record having jurisdiction in civil actions at law. The burden of
proof of actual damages caused by the tenant to the leasehold premises shall be on the
landlord.
(d) Any attempted waiver of this section by a tenant by contract or otherwise
shall be void and unenforceable.
(e) Failure of the tenant to provide the landlord with his new address in writing
upon termination of the lease or upon surrender and acceptance of the leasehold premises
shall relieve the landlord from any liability under this section.
(f) This section shall apply only to residential leaseholds and not to commercial
leaseholds.
