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Posted by Honey Bee on May 02, 2001 at 17:25:36:

In Reply to: Interest on Security Deposit posted by Nick on May 02, 2001 at 15:04:05:

Actually, the *Bank* pays interest on security deposits ... not the landlord. Interest is at whatever rate the bank sets (usually low) Buildings with 6 or more apartments (stabilized or not) must deposit security funds in an escrow account on the tenant's behalf. Bank should report annual interest to the tenant, who can withdraw the interest or let it accumulate.

Landlords can take 1% of the principle per year to cover administrative expenses.

:
: I'm sure this question has been answered in the past, but thank in advance

: Are landlords *required* to pay interest on security deposits of tenants?

: Does this requirement, if any, differ between free market and stabilized apartments in NYC?

: Is their a standard interest rate used or is their an annual rate published by a housing organization?

: Thanks.

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Comments:
: Actually, the *Bank* pays interest on security deposits ... not the landlord.  Interest is at whatever rate the bank sets (usually low) Buildings with 6 or more apartments (stabilized or not) must deposit security funds in an escrow account on the tenant's behalf.  Bank should report annual interest to the tenant, who can withdraw the interest or let it accumulate.

: Landlords can take 1% of the principle per year to cover administrative expenses.  

: : 
: : I'm sure this question has been answered in the past, but thank in advance 

: : Are landlords *required* to pay interest on security deposits of tenants?

: : Does this requirement, if any, differ between free market and stabilized apartments in NYC?

: : Is their a standard interest rate used or is their an annual rate published by a housing organization?

: : Thanks.



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