State Law Changes On Renters’ Security Deposits

HARTFORD, Conn. (AP) – Connecticut landlords will no longer have to repay 1.5 percent minimum interest on renters’ security deposits under a newly adopted law.

The change does not start until Jan. 1, 2012, but landlords’ and tenants’ groups are spreading the word so both sides are prepared.

Currently, Connecticut landlords must pay at least the average savings deposit rate to renters yearly on the money they hold for security deposits, but it cannot be less than 1.5 percent.

The new law eliminates that minimum, which property owners called unfair to landlords in the poor economy.

Legal assistance groups opposed the change, saying several banks have accounts that would pay the landlords at least 1.5 percent interest. State law requires landlords to keep tenants’ security deposits separate so they are protected from landlords’ creditors.

     (Copyright 2011 by The Associated Press.  All Rights Reserved.)

Comments

One Comment

  1. Perry Masonjar says:

    Let’s review the logic applied by CT legislators. The landlords are adversely impacted by having to pay a minimum of 1.5% on tenants deposits, so the minimum is removed by the legislation to protect the landlords. The tenant must pay a deposit and loses the use of their money for a year or more and may now be paid less interest on their deposit. Landlords are allegedly being protected against being forced to pay a minimum because the economy sucks, and yet the tenants in the same economic conditions are being forced to ‘loan’ (deposit) money to the landlord which they could have invested at 1.5% in the accounts mentioned in the story in the last paragraph. The best solution is to replace the current set of legislators with intelligent ones who act fairly and logically, considering the impacts on both sides of the issue. The criteria for the new legislators are: don’t spend any more money than is absolutely necessary, and don’t raise taxes to protect the special interest groups, lobbyists, and unions that donate to their campaigns.

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