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Interest on deposit in bldg w/ less than 6 units?

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Interest on deposit in bldg w/ less than 6 units?

Postby mjh » Tue Jan 21, 2003 12:37 pm

Is the LL required to return interest (minus 1% admin fee) on a deposit if there are fewer than 6 units in the bldg? Apt is not rent controlled or stablized. Lease is generic and states that "If the Building contains six or more apartments, the bank account will earn interest."

This fact sheet makes it sound like all deposits must accrue rent:
http://www.dhcr.state.ny.us/ora/pubs/html/orafac9.htm
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Re: Interest on deposit in bldg w/ less than 6 units?

Postby mjr203 » Tue Jan 21, 2003 1:36 pm

Usually they should acrue interest...

what is interesting about the 1% administration rule is that standard savings acct interest has been hovering just over 1% per annum for the last years -- making interest to the tenant a moot point?
most Landlords suck it.
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Re: Interest on deposit in bldg w/ less than 6 units?

Postby mjh » Tue Jan 21, 2003 2:14 pm

Thanks.

How can I find out if I am owed interest or not?
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Re: Interest on deposit in bldg w/ less than 6 units?

Postby Chimera » Wed Jan 22, 2003 12:36 am

If the building contains less than 6 units the landlord is not required to hold your security deposit in an interest bearing account, so it is possible that you are owed no interest.
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Re: Interest on deposit in bldg w/ less than 6 units?

Postby mjh » Wed Jan 22, 2003 11:22 am

But if the landlord voluntarily keeps it in an interest bearing acct (which he did), must he pay me my part of the interest?

Does this FAQ apply to unregulated apts?
http://www.housingnyc.com/resources/faq/security.html#interest

"Should I be getting interest on my security deposit?

If the building has six or more units the landlord must pay interest, if any, on your security deposit. The owner may keep one percent of the deposit amount each year as an administrative fee. If the building has fewer than six units and the owner deposits the security in a bank, the interest also belongs to the tenant, less one percent for administration.

For more information see the security deposit section of the NY State Attorney General's Landlord/Tenant Guide on our site."

Thanks!
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