Security Deposit Question

[Monkeegroupies]

Until recently, I was unaware of the law that says landlords have to keep security deposits in an interest earning account. About 2 months ago our local paper ran an article in the legal section about it and suddenly this friday all the apartments got a letter requiring tax forms for our accounts One page of the packet was from M&T bank explaining the forms and saying the accounts will be opened on June 1st. The other letter is from the manager (we live in a complex, 8 apartments per building, 4 buildings, and my mother grandmother and I occupy 2 apartments) asking us to fill out the forms and stating that interest checks will be sent to us each year. But, we've lived here 15 years and never recieved any interest. The complex was sold to new owners one time, several years ago. Are the current owners responsible for interest owed to us the entire time we've lived here or just the past few years? Also, my grandmother's apartment was originally rented by my grandfather, who passed away 5 years ago. Can they withhold the deposit from Gram because grandpa paid it?

[TenantNet]

See http://tenant.net/Rights/CTRC/ctrcf006.html

New LLs are responsible for deposits and interest from old LLs. They may tell you differently, but they are responsible.

Beware of some of the information requested. Personal information and SS# are not required to be given to LLs ... and can hurt you in the future. However, from what we know, banks can request SS# for withholding tax purposes. If you fail to give them the SS#, they still have to give you the interest, except that they will probably withhold the max amount for the IRS.

Yes, Grandma has same rights as Grandpa. All spouses do.

[Monkeegroupies]

Thanks so much for your quick reply! I'll be contacting the manager soon-we're looking to buy a house and it will be nice to add this interest to the down payment account. Can they withhold the security deposit from Gram if they only had a common law marriage? They were never legally married but they were together for 27 years.

[cestmoi123]

Be aware, the interest is likely borderline trivial. Could very well be <1%/year after allowable fees are taken out.