This question pertains to New York state. According to a friend of mine there is a law that went into effect around 2001 entitling a tenant to earn 4% of the interest accrued on the security deposit. I tried locating such a law online but could not find anything.
I am asking if there is in fact a law regarding a tenant’s right to earn 4% interest on either the security deposit or actual rent charged? I would appreciate any assistance.
Landlords, regardless of the number of units in the building, must treat the deposits as trust funds belonging to their tenants and they may not co-mingle deposits with their own money. Landlords of buildings with six or more apartments must put all security deposits in New York bank accounts earning interest
at the prevailing rate. Each tenant must be informed in writing of the bank’s name and address and the amount of the deposit.
Landlords are entitled to collect annual administrative expenses of one percent of the deposit… All other interest earned on the deposits belongs to the tenants. Tenants must be given the option of having this interest paid to them annually, applied to rent, or paid at the end of the lease term. If the building has fewer than six apartments, a landlord who voluntarily places the security deposits in an interest bearing bank account must also follow these rules.
Moving thread from IMHO to General Questions.
Ok Thanks. I’ll send this to my friend.