ST Alpha - "A security deposit isn't an investment. You give $3000, you get back $3000. Period." (Reading a Post)

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In response to "Landlord puts security deposit in Bitcoin. Guess what happens next! -- (link)" by Reagen

A security deposit isn't an investment. You give $3000, you get back $3000. Period.

Posted by Mop (aka rburriel) Jun 3 '22, 09:58

If inflation makes that $3000 worth less at the end of the lease, well that's too bad. You still get $3000 back. If the landlord invested the $3000 and made a fortune, he still only has to give back $3000.

Responses:

Agreeance. He doesn't need a lawyer. Small claims can handle it. It should take about an hour. :) - Swilcan Baron Jun 3, 10:20
Some of the replies suggest that that state also has some laws re: interest on deposits -- nm - Beryllium Jun 3, 10:00 1
- Most, actually. - Spawn Jun 3, 10:17
Actually, depending on local law, he probably needs to give back any interest it earned as well (if any). -- nm - pmb Jun 3, 10:00 7
- Does the landlord have an obligation to invest the money prudently? -- nm - Mop Jun 3, 10:01 6
  - Massachusetts law requires it be held in an interest-bearing account at a bank, and that the interest is paid to the tenant on an annual basis. -- nm - znufrii Jun 3, 10:07 2
    - In PA it must be held in escrow and if there is interest that interest must be paid to the tenant if they've lived there for more than 2 years -- nm* - decline Jun 3, 10:11
    - I take it that hasn't happened in this case. -- nm - Mop Jun 3, 10:09
  - Prudently is moot. The tenant gets back the deposit plus the minimum value of interest. If the landlord doesn't have that, too bad for them. -- nm - Reagen Jun 3, 10:04
  - ... investing a deposit is a risk that the landlord accepts as part of their cost of doing business. Maybe they get a big benefit, maybe they eat dirt - Beryllium Jun 3, 10:03 1
    - The landlord gets no benefit. Period. They're holding the money in trust, it's not a loan for the length of the tenancy. -- nm - Reagen Jun 3, 10:06
this math is mathing -- nm - St. Epiphany Jun 3, 09:59

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A security deposit isn't an investment. You give $3000, you get back $3000. Period.

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