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Connecticut's 2007 Security Deposit Interest Rate

By
Real Estate Agent with Fab Real Estate

As per Connecticut law, landlords must pay interest on the security deposits they receive from their residential tenants.

For the 2007 calendar year, this interest rate has been set at 1.5%, which is unchanged from 2006..

Landlords in Connecticut are allowed to require up to the equivalent of two months' rent as a security deposit, including any "pet deposits" or "last month's rent."  For tenants aged 62 or over, landlords may only require the equivalent of one month's rent as a security deposit.  Landlords may not commingle security deposit funds with their personal funds.

Upon the tenant vacating the property, the landlord has up to 30 days (or 30 days from the date the tenant provides a forwarding address, whichever is longer) to provide the former tenant with the security deposit refund, plus interest, or a statement detailing funds retained along with a check for the balance of the deposit.

Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator
Interest on the deposit?  I've never heard of that.  Is this only for landlords of residential houses or does this apply to apartment complexes too?
Jan 12, 2007 01:28 AM
Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate
Donna - This is a Connecticut law, and applies to all residential rental situations (it does not apply to commercial rentals).
Jan 12, 2007 01:47 AM