i need to pay security deposit to a tenant since june 1 2001 on 1612.00 can you tell me how much i need to pay the tenant

Asked by Chezzie60, Fairview, NJ Tue Jun 21, 2011

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Alex Kushnir’s answer
Alex Kushnir, Agent, Monmouth, IL
Wed Jun 22, 2011
Furthermore, you were supposed to send 1099-INT annually to your tenant. Additionally, Under the Rent Security Deposit Act the landlord has to put a security deposit in a separate bank account that pays interest. The landlord must tell tenant in writing the name and address of the bank where the deposit is being kept, the amount of the deposit, the type of account, and the current interest rate for that account.

Looks like you haven't done that. One of the option is to go to the bank and ask them what was the escrow interest they were paying on average every year during this time frame. They will help to calculate total for you, most likely. You might also need to check on 1099-INT
0 votes
Gerard Carney, Agent, Spring Hill, FL
Wed Jun 22, 2011
At 2% you need to take the number you have 1612 amd multiply it by 1.02 - 1644.24 this is year 1 multiply by 1.02 again for year two = 1677.12 year 3 = 1710.66 year 4 = 1744.87 year 5 = 1779.76 year 6 = 1815.36
year 7 = 1851.67 year 8 = 1888.70 year 9 = 1926.47 year 10 = 1965 so at 2% compounded annually the amount owed would be $1965 This is a simple calculation at a steady 2 percent return
0 votes
Gina Chirico, Agent, Fairfield, NJ
Wed Jun 22, 2011
Chezzie

As Alex already said - the security deposit, as per New Jersey Association of Realtor's Standard Lease Agreement, was to be held in an interest bearing or money market account therefore the interest should already be computed by the bank and in the account. If you failed to deposit the security deposit in an interest bearing account or money market then you may have a problem trying to figure out what the interest rate earned for the last 10 years is.

Gina Chirico, Sales Associate
Lattimer Realty
0 votes
Alex Kushnir, Agent, Monmouth, IL
Wed Jun 22, 2011
you were supposed to keep it in interest bearing account all this time. i am sure, the bank will give you the right amount
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