ST Alpha - "Actually, depending on local law, he probably needs to give back any interest it earned as well (if any). -- nm" (Reading a Post)

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In response to "A security deposit isn't an investment. You give $3000, you get back $3000. Period." by Mop

Actually, depending on local law, he probably needs to give back any interest it earned as well (if any). -- nm

Posted by pmb (aka pmb) Jun 3 '22, 10:00

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Responses:

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

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