When my tenants leave, do I need to pay them the accrued interest on the security deposit for the entire period I possessed it? I understand that per lease; if there are any damages, the repair cost will be subtracted from the security deposit. I have a separate regular savings account whereby I keep the rent money. When I receive the rent in check, I deposit it into my common checking account and then transfer the remaining amount after deducting the mortgage payment from the whole rent amount. Is it OK to keep the security deposit in that separate savings account I mentioned above?
My rental property is located in Chesterfield, VA.
Interest on security deposits is a statutory amount - and that amount has been zero for some time. Unless the tenant has been there a long time, you may not owe any interest on the security deposit. Virginia Code 55-248.15:2. spells out the rate for each year there is a security deposit.
Answers provided are general in nature and usually based on Virginia law. If I answer something posted from another state I'm probably out on a limb. Reliance on any answer posted here is at the sole risk and responsibility of the user, and in no way creates or implies an attorney client relationship with the author, his firm, staff, family or even his dog. And isn't it silly that we have to cover our *(&%$ with disclaimers in case some fool wants to blame me when they screw up? Reading any answer means you agree with the above.
I will add to Mr. Hart that if you do not fall under the Virginia Residential Landlord Tenant Act (by law or by agreement), then there is no interest required. Also, as Mr. Hart indicated, the VRLTA interest on a security deposit has been zero since 2009. I have provided a link showing the interest rates for Virginia Code Section 55-248.15:2.
Additionally, the requirement to pay interest on security deposits held for over 13 months is being repealed effective January 1, 2015.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline