Rental Basics in New York>Question Details

Megan Salerno, Renter in New York, NY

Is it true that your landlord is supposed to give you interest on your security deposit?

Asked by Megan Salerno, New York, NY Thu Oct 25, 2012

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Christine Gordon’s answer
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Hi Megan,

The information provided below from our friends in Boise is accurate as per the rent guideline board here in NYC. Only thing I'll add is that's what the W9 form is for that you had to complete when you signed your lease. They have to pay you interest so therefore it's considered "income" for you, even though it's minimal... don't spend it all in 1 place, lol

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
2 votes Thank Flag Link Thu Oct 25, 2012
Thanks christine, your right i do remember filling in that w9 form.
Flag Fri Oct 26, 2012
Landlords are required under New York General obligations Law to hold security deposits in trust. If the building has 6 or more units, the landlord must notify tenants in writing where security funds are being held in a NY interest bearing bank account, and must turn over to the tenants all but 1% of any interest earned. The 1% held by the landlord is an administrative charge intended to offset monthly banking fees charged by the bank for the rent security account. Tenants can choose to receive interest at the end of their lease or annually.
1 vote Thank Flag Link Thu Oct 25, 2012
Megan,
If you put together the answers below, River Rock says management can keep 1%, and we're all agreed interest would be about 1%, so it seems like the answer is it's a wash for you.
1 vote Thank Flag Link Thu Oct 25, 2012
Yes, however the interest amount is minimal...see link below.
http://www.ag.ny.gov/sites/default/files/pdfs/publications/T…
1 vote Thank Flag Link Thu Oct 25, 2012
thank you for the link anna. this tenant guide is real helpful!
Flag Fri Oct 26, 2012
Yes. And the security deposit is supposed to be kept in a separate escrow account. Thats why the landlord asks for one check for your first month's rent and another for security. With interest rates as low as they are, don't expect any real return. Maybe 1%.
1 vote Thank Flag Link Thu Oct 25, 2012
Yes they do if it's a commercial property as opposed to a homeowner with a rentable apartment. The interest is nothing to write home about and yes, they can keep 1% of that interest. Of course if you've damaged the apartment they can make it difficult for you. Good luck.
0 votes Thank Flag Link Wed Nov 7, 2012
Not only are all of these answers correct but you also have to remember that unless the unit is returned in the exact same condition as it was rented to you, the landlord or management can and most likely will charge you for any and all things needed (and possibly some not needed) repairs. So, between service charges, suuuuuuper low interest rates and repairs after you surrender the unit, don't expect to get much more than a pack of gums worth of interest IF that much.
0 votes Thank Flag Link Thu Oct 25, 2012
Only if you are part of multi housing; more than 4 apartments. Anything less and the answer is no.
0 votes Thank Flag Link Thu Oct 25, 2012
Yes Megan. All but 1% of the interest. The interest is usually minimal.

I hope this answered your questions. Should you have any additional questions, please feel free to contact me by the ways below.

Wishing you the best of luck,


De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
Direct:(631)638-6193
Mobile: (631)384-3695
cbmoves.com/DeVonte.Williamson
DeVonte.Williamson@cbmoves.com
"I Stand Behind Getting You Results!
0 votes Thank Flag Link Thu Oct 25, 2012
Hello Megan,

You do get an interest on your security deposit but as Christine mentioned it's very minimal and depending on the management company they will charge a management fee on the interest leaving you with no interest.
0 votes Thank Flag Link Thu Oct 25, 2012
Hi Megan,

We are a property management company in Idaho, however, we found some great info for you on HousingNYC.com

\http://www.housingnyc.com/html/resources/attygenguide.html#6

"Should I be getting interest on my security deposit?

If the building has six or more units the landlord must pay interest, if any, on your security deposit. The owner may keep one percent of the deposit amount each year as an administrative fee. If the building has fewer than six units and the owner deposits the security in a bank, the interest also belongs to the tenant, less one percent for administration.

For more information see the security deposit section of the NY State Attorney General's Landlord/Tenant Guide on our site."

Hope this helps.
0 votes Thank Flag Link Thu Oct 25, 2012
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