Q&As

What does it mean for the landlord to hold a deposit in an interest bearing account? Does the obligation require the landlord to obtain a ‘best rate of interest’?

read titleRead full title
Published on LexisPSL on 05/07/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • What does it mean for the landlord to hold a deposit in an interest bearing account? Does the obligation require the landlord to obtain a ‘best rate of interest’?

What does it mean for the landlord to hold a deposit in an interest bearing account? Does the obligation require the landlord to obtain a ‘best rate of interest’?

A landlord is often obliged to hold rent deposit monies in an ‘interest bearing account’, which simply means a bank account into which interest payments on the deposit are to be made at regular intervals.

How the interest on a rent deposit is treated will, in the main, be a matter for negotiation between the parties and will be set out in the rent deposit deed. However, usually, interest on a rent deposit account forms part of the deposit and must be returned to the tenant when the deposit is released.

Generally,

Related documents:

Popular documents