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Landlord Taking Interest on Security Deposit
Started by jstreetdream
about 16 years ago
Posts: 115
Member since: Mar 2009
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Unless things have changed since I was a renter, the landlord can keep 1% of the interest, which in this market probably means all of it.
you are a compete loser.
Why don't you sue the guy, there's a $15 filing fee at Small Claims Court and then what's minimum wage for two hours you'll spend there waiting and in front of an arbitrator? Will that cover the interest?
$2300 at Chase in a CD for 9 months at their current rate of 0.25%, someone do the math for me, let me know.
That he gave you any is already very generous. I believe LL can keep up to 1%, so he could have legally kept all of it. I'm not surprised he's not taking your calls. What would you like him to do? Set you up with his lawyer for a master class at $250/ hour?
4.31
He charged that 1% on top of what was taken out of the interest deposit. So my question is again: Has anyone heard or know if landlords can take the interest out of a tenants deposit automatically through the way the bank sets up that savings account, in this case splitting the interest in a seeming 5:1 ration for the landlord, and then taking an additional 1% after the deposit is taken out of the bank.
My point is it seems they took 1% automatically and then 1% after it was taken out. For those who think this is a small and negligable, just go back to wasting your time as you obviously dont have anything better to do. For serious people, if they do this as policy that is getting an extra 1% possibly on every deposit, and as this is a big company (over 200 tenants) that could be a lot of money they are taking. Thanks for any help
Another example of innumeracy and why the US is doomed.
http://www.innumeracy.com/
No way, no how, he earned over 2% during that period, if that is what you are claiming. If he earned on average 1.2% (which is still way high for demand deposits), then a 5 to 1 ratio is about right after he takes out his 1%.
what a loser this guy is - get over it little buddy, everything is going to be ok.
"you are a compete loser."
"what a loser this guy is."
Gotta agree.
Read this:
http://www.housingnyc.com/html/resources/attygenguide.html#6
You got an interest rate of $4 / $2300 * 12 months / 8 months = 0.26%. This is a normal interest rate currently. The landlord is entitled to take 8 months / 12 months * 1% * $2300 = $15. If you got more than $2300 + $4 - $15 = $2389 back, it was all legal. How much did you get back?
If the landlord kept an extra $10, this was probably unintentional. I know 200 * $10 = $2000 might seem like a lot of money, but we're talking about a building that is doing $5M a year in rent. That $2000 is the least of their issues at the moment.
Every year I lose money on what is held by the bank for my security. Usually it's about $70 in interest. I get a check for about $15 (because the landlord got the other $55 as their 1% fee) and then I get a 1099 for $70, meaning I pay about $20 more to the IRS than I even got, causing me a net loss of about $20 a year for the money in the bank account.
For some reason, standard procedure for the banks is to 1099 the tenant for the full amount the landlord got. How this passes legal muster, I have no idea. But I've tried several times to get the bank to adjust the 1099, giving one to the landlord for his portion, and I get refused every time.
It's definitely a broken system when interest rates are low.
You can deduct the $55 that the landlord takes out on another line after you report the $70. So you only pay tax on the massive $15.
See, this is why it's always better to own than to rent.
To the negative posters, your anonymous nature makes you bolder than you are in real life. That's a real loser. Now grow up and get a real life
"Now grow up and get a real life"
This from a guy who wants to pursue his landlord over $4?
Again, prove my point
jstreet: if you are not already in the auditing business, you should be. And I mean that as a compliment. It takes a special kind of mind to obssess over minutia that most people pass off as, well, inconsequential minutia.