Legal Question in Real Estate Law in California
CA Laws regarding interest paid on deposits
I would like to know what the CA law is pertaining
to interest paid on security deposits. Are they
required to do so? If not, how do we know they
have not invested it in interest building
investments? What is the best way to receive the
interest due to the leasee?
1 Answer from Attorneys
Re: CA Laws regarding interest paid on deposits
Unless there is a provision in a local rent-control or tenants'-rights ordinance where you live, you are not entitled to interest on your security deposit unless your lease specifically says so. If the lease is silent on the matter, you are not entitled to interest and the landlord can keep whatever interest she/he/it may have earned from the use of your deposit in the interim.