Security deposit: the right of the tenant to interest

Security deposit for the tenant’s right to interest The tenant is entitled to interest on the security deposit at the end of the lease, but what effect does the current rate have on the deposit paid by the tenant?

When renting, it is good practice to pay the owner the so-called security deposit, to stop the building. However, when he leaves the property and hands the keys to the owner, the tenant is entitled to a refund of the deposit with the related interest. But what interests today, with rates at historic lows? What effect does the rate of 0.2% have on the security of the person who takes the house for rent?

A legitimate doubt, but remember that for the security deposit there is the legal interest rate, which serves to quantify the value of the time during which the tenant has left the deposit in the hands of the owner. Of course, with interest rates at historic lows, which is only 0.2%, doubts take over. What does this mean for those who rent?

Insights

Insights

The interest due to the tenant on the security deposit, at the end of the lease, is calculated based on the number of days in which the deposit was withheld by the owner. The calculation is based on the legal interest rate defined by Decree of the Ministry of Finance.

The latest rate, recently defined by the Ministerial Decree of 11 December 2015, published in the Official Journal no. 291 of 15/12/2015, came into force from 1 January 2016 and marks a historical record: it is the lowest in the history of our country, 0.2%. A record that alarms the many tenants who have a rental contract and have paid the security deposit on signing the contract with the landlord.

Clarifications

Clarifications

From the Research Office Only Rentals, a real estate network specialized in renting, some clarifications on the subject. First of all, it must be ensured that the security deposit is interest-bearing, that is, it produces legal interests.
For housing rents a security deposit is often requested that does not produce legal interest if free contracts are used, while for contracts with agreed rents the payment of interest is mandatory, as is the maximum amount to be paid as a deposit which it cannot exceed 3 monthly installments of the fee.
For leases with different uses, the down payment requested is rather fruitful, so at the end of each year the landlord must pay interest to the tenant, or pay them at the end of the lease period in a single payment.

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