Rental Security Deposits in CT ~ What Are the Limits?
The rental market has been very hot in CT and likely elsewhere around the country no doubt due to the amount of homeowners who have been displaced due to a short sale or foreclosure. There have been a few times where I have seen a rental listing require a three-month security deposit or even extra money for a pet allowance.
There is actually a CT state statute CGS 47a-21 that directly addresses rental security deposits.
What exactly IS a security deposit? According to the statute, a security deposit is defined as “any advance rental payment other than the first month’s rent and a deposit for a key or special equipment”.
The landlord usually tells the listing agent what s/he wants to collect from the tenant in addition to the monthly rental amount. It might be all or some of the following:
- First month’s rent
- Last month’s rent
- Two months’ security deposit
- Pet Deposit
- Key Deposit
Can all of the above be required from a tenant? According to CT state statute CGS 47a-21, the answer is NO.
Is first month’s rent allowed? YES
Is last month’s rent allowed? NO
Is a pet deposit allowed? NO
What about the TWO month’s security deposit? YES and NO..... Read on..
The statute states the following:
If a tenant is under 62 years of age, the landlord may take an amount equal to two months’ rent.
If a tenant is 62 years of age or older, the landlord may take ONLY one month’s rent.
So, at lease signing, the landlord is limited to taking only the following:
- First month’s rent
- One or two month’s rent as security deposit
- Deposit for key or special equipment
**No extra monies can be requested for a pet deposit or the last month’s rent.**
The statute also defines how the landlord must handle the security deposit. The landlord must deposit the money into an interest bearing escrow account in a Connecticut bank. No co-mingling is allowed. The interest is defined by the state banking commissioner.
This Interest Calculation Table in .xls format, designed by the CT Department of Banking, provides assistance to landlords and tenants in determining the interest that is owed on rental security deposits.
How do tenants get their security deposit returned? When tenants decide to move, they must provide their landlords with written notice of a forwarding address where the security deposit with interest can be sent. The tenant should send the notice via certified mail with a return receipt.
Landlords must return security deposits with interest or give tenants written notice of damages being claimed within 30 days of when tenants move.
Prior to moving, tenants should repair any damage they caused and walk through the rental with the landlord, if possible. Keys should be returned when the lease or tenancy ends.
For more detailed information, visit the CT Department of Banking website to ensure both tenants and landlords understand and are in compliance with the CT statute on security deposits.
Related post:
Need a Rental in Fairfield County CT?
Rental Security Deposits in CT ~ What Are the Limits?
The information provided here is for informational purposes and not intended to be legal advice.
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