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#91546 - 06/25/03 09:03 PM Rent Security Accounts

Is there a floor rate that a bank has to pay landlords on rent security accounts? My bank wants to go from 1.25% to 1%.

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#91547 - 06/26/03 12:24 PM Re: Rent Security Accounts
PatrickG Offline
100 Club
Joined: Jun 2001
Posts: 165
Binghamton, NY, USA
From the Attorney General's "Tenant's Rights Guide":
Landlords, regardless of the number of units in the building, must treat the [rent security] 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 annual administrative expenses of 1% 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. For example: A tenant pays a security deposit of $400. The landlord places the deposit in an interest bearing bank account paying 2.5%. At the end of the year the account will have earned interest of $10.00. The tenant is entitled to $6.00 and the landlord may retain $4.00, 1% of the deposit, as an administrative fee.

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#91548 - 06/26/03 01:25 PM Re: Rent Security Accounts

I understand the response given to my question but I still need to know if the State has imposed a floor rate?

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