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    gavinah's Avatar
    gavinah Posts: 1, Reputation: 1
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    #1

    Aug 29, 2006, 05:09 AM
    Interest bearing account for up front rental payments?
    Is a landlord required to put rental payments, (paid in advance), in an interest-bearing account?

    Note, the rental payments are NOT a security deposit.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Aug 29, 2006, 05:37 AM
    Hello gavinah:

    Nope. Why would they? It's the landlord's income. Who would the interest accrue to, you? Why?

    Let's say you sold a bicycle. Some guy gave you $50 to hold the bike till Saturday. Is that $50 yours to spend BEFORE Saturday?? I think it is...

    If you want to earn interest, keep your money in YOUR account until it's due.

    excon
    Cvillecpm's Avatar
    Cvillecpm Posts: 553, Reputation: 28
    Senior Member
    		  
    #3

    Aug 29, 2006, 06:41 AM
    This requirement is state specific... most states don't require interest and don't require that deposits be in interest bearing accounts...

    Check your individual state laws:o
    s_cianci's Avatar
    s_cianci Posts: 5,472, Reputation: 760
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    #4

    Aug 30, 2006, 12:11 PM
    Not to my knowledge. Usually they are considered a "security deposit" of sorts ; not to guard against physical damage that you may do to the property while living there but as a "loss-prevention" tactic to prevent you from disappearing one night and not paying that month's rent. This way, if you do disappear without warning, the rent is covered, they can void your unexpired lease and rent the property to another tenant.
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