Interest on Security Deposit held by LL

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Interest on Security Deposit held by LL

    My LL held my security deposit for about 10 months before depositing it with TDS.

    I'd like to get the interest owed on this deposit as the LL held it in a personal account.

    According to my tenancy agreement, if I owe the LL rent arrears, it is due with 4.5% interest(4% over base rates).

    Does the principle of reciprocity apply to the interest rate on the security Deposit?

    #2
    I would say no. Unless it states the oposite in the tenancy agreement.
    There is always scope for misinterpretation.

    If my posts can be interpreted in two ways, one that makes you feel angry and one that doesn't, I meant the latter.

    Everyday is an opportunity to learn something new.

    Comment


      #3
      It is almost universal that interest is not payable on a security deposit. You should remember that it is possible for a landlord to hold your deposit in an interest bearing account and still comply with the deposit regulations.

      Comment


        #4
        I think the issue is not tenancy deposit regulations, but more generally who owns the interests accrued on the money that one holds on behalf of someone else.

        I would think that if agreement is silent, agreement is that deposit will not bear interests. Though I do not know whether this would also imply that landlord could get interests for himself.

        Thinking about it it may be a good idea to specify that in the tenancy agreement.

        Edit -
        Found an old thread on the topic: http://www.landlordzone.co.uk/forums...hp/t-4321.html

        Comment

        Latest Activity

        Collapse

        Working...
        X