Fab Real Estate Blog: Connecticut's 2008 Security Deposit Interest Rate

Connecticut's 2008 Security Deposit Interest Rate

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
203.746.1199
Connecticut Real Estate and Homes for Sale

Comment balloon 6 commentsDon Fabrizio-Garcia • January 08 2008 01:38PM

Comments

Is that a typo above?  Shouldn't that be, "For the 2008 calendar year, this interest rate has been set at 1.5%, which is unchanged from 2007" ??

Posted by Anonymous almost 10 years ago
Yes, that was a typo.  I've made the correction in the post.  Thanks for catching that error!
Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) almost 10 years ago

hello there can you tell me if this same law about interest on deposits applies in New York State?

Posted by riowoman@aol.com over 9 years ago

Rio - I don't practice in New York, so I don't have a definite answer for you.  I did find this link via Google:  http://www.rentlaw.com/dep/nydeposit.htm

There, it states that interest is only paid on deposits in buildings with six or more units.  However, I would verify this information with a New York real estate attorney.

Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) over 9 years ago

I know  the interest is 1.5%.  The owner of the house i been leaving for the past 5 years is going to sell the house.  I want to know how much money she have to give me back. Is the 1.5% of the amount i give her? or 1.5% of every year of the amount i give her?

Posted by Ana Maria Isaza over 8 years ago

Ana Maria - From the Connecticut Association of Realtors website:

Landlords Must Pay Interest on Security Deposits. Landlords are required to pay annually to a tenant interest that is earned on the security deposit. Every year CT's Department of Banking sets the deposit index (0.9% for 2008), but the statutes provide that the amount of interest cannot be lower than 1.5%. Therefore, a landlord must pay interest of 1.5% on the security deposit held in escrow even if that landlord earns less that 1.5%. If a tenant pays his/her rent late (more than ten days after its due date), the interest on the security deposit is forfeited for that month. The exception to this rule is when the lease contains a late charge for late rental payments.

Speak to your landlord about this and, if necessary, consult with a real estate attorney.

Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) over 8 years ago

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