Legal Question in Real Estate Law in California

rental security deposits

I have a small business. I received a lease, but I have a question. When you give the landlord a security deposit and they hold it for the term of the lease (3 years). Is the landlord required to pay me interest on the deposit?


Asked on 9/06/06, 2:43 am

2 Answers from Attorneys
Judith Deming Deming & Associates

Re: rental security deposits

No; the law does not require interest be paid on commercial lease security deposits.

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Answered on 9/06/06, 11:21 am
Anthony Roach Law Office of Anthony A. Roach

Re: rental security deposits

I agree with Ms. Deming.

Interest is only paid on security deposits in residential leases that are subject to a rent control ordinance. It is usually the rent control ordinance that provides for the security deposit to be placed in an interest bearing account.

Commercial leases are excluded from rent control ordinances in California.

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Answered on 9/06/06, 2:00 pm


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