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Are You Entitled To Interest On A Security Deposit? (SOLVED!)

Transfers of Pre-payments to New Landlords: If the building is sold or transferred to a new owner, the landlord must credit the last month’s rent and security deposit, with any accrued interest, to the new landlord 🔥 The new landlord must notify the tenants about the transfer, in writing, within 45 days of receiving the money 🙈 If the former landlord fails to transfer the pre-payments to the new landlord, they are still liable, but the new landlord is also obligated to the tenant for the amount of the pre-payments 🔥 The new landlord can satisfy this obligation by granting free rent for a time equivalent to the’s having payments made.
Tenants should carefully note the condition of their apartment when they first move in and confirm that condition in writing with their new landlord. When tenants decide to move, they should notify their landlord in writing of their plans to leave and must provide written notice of a forwarding address where the landlord may send their security deposit with interest. Since a tenant may need to show proof that the written notice was sent to their landlord, the tenant should send the notice by certified mail with a return receipt. All rental payments should be made on time and tenants should repair any damage they cause. Before moving out, if possible, tenants should inspect the apartment together with their landlord. Keys should be returned the day the tenancy ends.
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Based around further reading from lawhelp.org, your lease or security deposit receipt should state the reasons the landlord can keep your deposit. A tenant who moves out before a written lease expires may owe the landlord rent through the end of the lease term. Most tenants who are renting on a month-to-month basis or after a lease has expired are required to give at least 30-days notice before they move out. A tenant who does not do this may owe the landlord an additional month’s rent. Your landlord can agree to let you move out early without owing additional rent or, if the landlord is able to re-rent the unit, you may not owe the entire amount. (we truly thank Hellena Goff for their unique insights).
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Insured tenancy deposit schemes allow either the landlord or the letting agent acting on the landlord’s behalf to hold the deposit in a suitable account for the duration of the tenancy. Landlords or letting agents will pay to protect the tenancy deposit to comply with the TDP legislation, which is generally a small fixed sum. In this case, to avoid any disagreements later in the rental transaction, it is best practise to include information in the tenancy agreement about who is entitled to any interest earned during the tenancy. It’s quite usual for the interest to be retained by the landlord or their agents. If there is no mention of the interest in the tenancy agreement, then it can cause confusion. For TDS the amount registered as the tenancy deposit is the sum protected and does not include any interest accrued, so making it clear what happens to any interest will benefit all parties and reduce any concerns.
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