 pay interest on escrow (by hobi [PA]) Nov 12, 2018 6:40 AM
 pay interest on escrow (by Tony [NJ]) Nov 12, 2018 6:50 AM
pay interest on escrow (by RathdrumGal [ID]) Nov 12, 2018 7:35 AM
pay interest on escrow (by Mickie [OH]) Nov 12, 2018 7:41 AM
pay interest on escrow (by NE [PA]) Nov 12, 2018 7:42 AM
pay interest on escrow (by fred [CA]) Nov 12, 2018 7:57 AM
pay interest on escrow (by Oregon Woodsmoke [ID]) Nov 12, 2018 8:31 AM
pay interest on escrow (by myob [GA]) Nov 12, 2018 8:46 AM
pay interest on escrow (by Don [PA]) Nov 12, 2018 9:36 AM
pay interest on escrow (by Tom [FL]) Nov 12, 2018 10:18 AM
pay interest on escrow (by Ed [PA]) Nov 12, 2018 4:34 PM
pay interest on escrow (by Wilma [PA]) Nov 13, 2018 12:21 PM
pay interest on escrow (by hobi [PA]) Posted on: Nov 12, 2018 6:40 AM
Message:
Have very good tenant leaving end of December after 7 years, since they bought a house recently. I understand that I must pay them interest on their security deposit, but I don't know the details. Does anyone know how to figure out and pay the interest on the security deposit held for them in escrow account? Thank you.
--71.112.xxx.xxx |
pay interest on escrow (by Tony [NJ]) Posted on: Nov 12, 2018 6:50 AM
Message:
It's true. Last I knew in PA, the funds must be put in an interest bearing account and interest must be credited AFTER THE FIRST YEAR. How about credit 0.7% per year and compound it. I think you can search your state regs on this site. --73.215.xxx.xx |
pay interest on escrow (by RathdrumGal [ID]) Posted on: Nov 12, 2018 7:35 AM
Message:
It will only be an issue if someone contests it. If they have been good tenants and are leaving on cordial terms, and if you are reasonable about the SD deductions, I doubt it will be an issue. I would just add a line item on the SD accounting "Interest on SD" and credit $10 on a $1K SD. Interest rates have essentially been zero over the past 10 years. --98.146.xxx.xxx |
pay interest on escrow (by Mickie [OH]) Posted on: Nov 12, 2018 7:41 AM
Message:
This kind of thing is why I do move in fee instead of a deposit. It also motivates me to be consistent in quarterly inspections too. --174.233.xxx.xxx |
pay interest on escrow (by NE [PA]) Posted on: Nov 12, 2018 7:42 AM
Message:
Realistically, (probably taboo) don't worry about it unless they ask. You can also charge a yearly handling fee that will wipe out any of that interest. --174.201.xx.xx |
pay interest on escrow (by fred [CA]) Posted on: Nov 12, 2018 7:57 AM
Message:
Where were you holding the S.D from the day this tenant moved in?
What does your state say about interest on S.D?
If there is any interest due to tenant by law, wipe it out with "maintenance/management fee".
Or pay the "interest" and raise your cleaning fee deduction from the S.D. (you are probably undercharging cleaning)... --99.59.x.xxx |
pay interest on escrow (by Oregon Woodsmoke [ID]) Posted on: Nov 12, 2018 8:31 AM
Message:
If the deposit was held in an escrow account, you should have bank statements showing how much interest the bank paid. --174.216.x.xxx |
pay interest on escrow (by myob [GA]) Posted on: Nov 12, 2018 8:46 AM
Message:
Just do 1% a year. Really what a pain? We have NO interest on deposits here.
Mickie OH sorry your not taking deposits can't be explained away using different name. Having to pay 1% interest is reason not to have dep acct? From your previous posts almost 99% don't do it your way. Not saying your wrong in your business cause it's your business but 99% aren't wrong either. --99.103.xxx.xxx |
pay interest on escrow (by Don [PA]) Posted on: Nov 12, 2018 9:36 AM
Message:
Yes, you have to pay interest, but you can also take a one percent per year management fee. Until recently, not many bank accounts paid more than one percent, so it is a wash. --69.244.xx.xx |
pay interest on escrow (by Tom [FL]) Posted on: Nov 12, 2018 10:18 AM
Message:
Hobi of PA,
Once the tenant moves out and turns over the keys. You have 30 days to return the Security Deposit or a letter showing the deductions from the SD.
Security deposit: __________
Interest on Security Deposit per year x 7 years__________
LESS 1% administration fee on security deposit_________
sub total____________
less any damages_________
unpaid balance on water and sewage if there were public water and sewage____
Total_________________
Lets hope you had a check-in list plus took pictures and now you will have a check out list when you do a final inspection of the unit.
Hobi of PA, Highly recommend you consider getting a copy of the PA landlord tenant law and reading it front to back. Also consider checking out some of the forms and books on Mrlandlord.com. Consider attending convention in 2019 it would be a big help to you no matter if you have one unit or many units.
--99.56.xx.xx |
pay interest on escrow (by Ed [PA]) Posted on: Nov 12, 2018 4:34 PM
Message:
Supposed to pay them the interest after the first year but as everyone else noted essentially zero. And that is simple interest not compounded! That law was written 60 years ago. You can take the 1% administrative fee which has been more than interest bearing accounts pay.
I just return the security deposit minus any damages. Any write-up showing interest earned minus admin fee just confuses and angers people.
About 15 years ago I had a tenant ask for interest. He was pretty disappointed when I showed him he earned $20 over 7 years and the admin fee exceed the interest but I was nice enough not to charge him for that. --96.235.xx.xx |
pay interest on escrow (by Wilma [PA]) Posted on: Nov 13, 2018 12:21 PM
Message:
I don't ask, just give them the final accounting, from which I have never taken the 1% fee. They always laugh at the pitiful interest. --71.175.xxx.xxx |
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