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A security deposit is any advance rental payment other than the first month's rent. The security deposit remains the tenant's property but the landlord holds a security interest in it. Security deposits must be kept in an escrow or savings account at a bank. In some cases, landlords pay tenants interest on security deposits annually or on the anniversary date of a tenancy either directly to tenants or as a credit towards the next month's rent. Make sure to ask if your security will be held in an interest bearing account and when you will receive you the accumulating interest. Payment should be made to you no later then 30 days after moving out of the rental property.
|Jennifer Mathes, Ph.D.|