State Specific Question About: CONNECTICUT (CT)

Do tenants look at it differently if instead of asking

for 1st mos. rent, and 1 1/2 times the rent for security deposit, if you ask for 1st mos, last mos. rent, and only one month's security. I have always found myself having to use the security deposit to pay for the last mos. rent.(no matter how I worded the lease). Since I rent to people who are not part of the upper crust, I was happy that I had this money to cover the last mos. rent, however it left me with no money for any damages. Therefore I am asking for more than a mos. security deposit this time and first mos rent upfront. However I have seen a few landlords ask for one mos. security deposit, but ask for first and second mos rent upfront. I was wondering if this is legal in CT? Also wondering if this sits better with perspective tenants?

The maximum advance rental payment that you can collect in CT is 2 months rent (1 month if tenant is 62 or older), regardless of whether you call it "last months rent" or "security deposit".

CT Law defines security deposit:

"Security deposit" means any advance rental payment other than an advance payment for the first month's rent and a deposit for a key or any special equipment.

Amount of security deposit.(1) In the case of a tenant under sixty-two years of age, a landlord shall not demand a security deposit in an amount or value in excess of two months' periodic rent which may be in addition to the current month's rent.

(2) In the case of a tenant sixty-two years of age or older, a landlord shall not demand a security deposit in an amount or value in excess of one month's periodic rent, which may be in addition to the current month's rent. Upon the request of a tenant sixty-two years of age or older, any landlord who has received from such tenant a security deposit in an amount or value in excess of one month's periodic rent shall refund to such tenant the portion of such security deposit that exceeds one month's periodic rent.

name it s.d. in the lease and explain it as last month's rent in person. Drive home that the s.d. part of the s.d. will get returned as well, if there is no damage. It is all about helping tenants down the line. They will need s.d. and 1st month's rent again...

Yes, it is legal to get the first month plus two month's security deposits in CT. I've had excellent results doing this for the past 10 years compared to when I first started out as a landlord and got 1st, last, plus security and had some of the problems you describe.

Here is what the CT Banking Commission website states:

What Is A Security Deposit?

A security deposit is any advance rental payment other than an advance for the first month's rent or a deposit for a key or any special equipment. A security deposit remains the tenant's property but the landlord holds a security interest in it. Security deposits must be kept in an escrow account in a Connecticut bank.

How Large A Security Deposit Can A Landlord Require?

Landlords can't require more than two months rent as a security deposit. This limit is reduced to one month's rent if a tenant is 62 years of age or older.

Do Landlords Pay Tenants Interest On Security Deposits?

Yes. Landlords must pay tenants interest on security deposits of at least the average commercial banks savings deposit rate as annually determined and published by the Banking Commissioner. Interest must be paid annually on the anniversary date of a tenancy either directly to tenants or as a credit towards the next month's rent. (2009 interest is 1.5%)

When Do Landlords Have To Return Security Deposits?

Landlords must return security deposits with interest or give tenants written notice of damages being claimed within thirty days of when tenants move. The only exception is if a tenant fails to provide a written forwarding address: landlords then need not return security deposits or provide a notice of damages until fifteen days after receipt of a forwarding address in writing.

If a landlord does not return a security deposit with interest or provide a written notice of damages within these statutory time limits, the landlord may have to pay the tenant twice the amount of the security deposit. Tenants may pursue this remedy in court. For further information, see the section on options for resolving disputes.