As per Connecticut law, landlords must pay interest on the security deposits they receive from their residential tenants.
For the 2008 calendar year, this interest rate has been set at 1.5%, which is unchanged from 2007. It should be noted that 1.5% is the lowest interest rate for security deposits allowed by state statute.
Landlords in Connecticut are allowed to require up to the equivalent of two months' rent as a security deposit, including any "pet deposits" or "last month's rent." For tenants aged 62 or over, landlords may only require the equivalent of one month's rent as a security deposit. Landlords may not commingle security deposit funds with their personal funds.
Upon the tenant vacating the property, the landlord has up to 30 days (or 30 days from the date the tenant provides a forwarding address, whichever is longer) to provide the former tenant with the security deposit refund, plus interest, or a statement detailing funds retained along with a check for the balance of the deposit.
Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
Connecticut Real Estate and Homes for Sale