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Am I entitled to interest on my security deposit?



It depends.

  • Have you have been at the property for more than six months?
  • Is the security deposit you paid more than $50 or one-month’s rent, whichever is larger?

If your answer to both questions is “yes,” then you are entitled to interest on your deposit. The landlord owes you interest at the rate of 5% per year, on the amount of the deposit that is more than $50 or your monthly rent, whichever is larger.

For example, if your rent is $700 per month, and you paid a security deposit of $1000, you are owed interest of 5% per year on $300 (the amount your deposit exceeds your monthly rent). If your tenancy is subsidized, and your monthly rent is $25, but you paid a deposit of $150, you are entitled to interest of 5% per year on $100 (the amount by which your deposit exceeds $50).

A landlord is required to pay interest owed on a security deposit to the tenant annually.

If you paid more than one refundable deposit, like a pet deposit in addition to a security deposit, you can add those amounts together when calculating the interest you are owed.

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