Your security deposit is your money, even after you give it to the landlord. The Rent Security Deposit Act (“RSDA”) is the law that says how much security the landlord is allowed to collect (no more than 1 ½ months rent). It also says what the landlord must do to protect your security deposit, and when the landlord must return it to you. It directs the landlord to return your security deposit when you move out, even if you move out before your lease is over. The RSDA also tells you when you can request that the landlord use the security deposit to pay your rent.
You cannot get your security deposit from the landlord until you move out of your apartment. However, if the landlord fails to do one or more of the things listed below, you may be entitled to direct him or her to apply your security deposit to pay your rent. Under the Rent Security Deposit Act, your landlord must:
- Put your security deposit at the time that you paid it, in a special bank account that pays interest and;
- Give you notice (tell you in writing) within 30 days after you pay the initial security deposit, within 30 days after the deposit is moved from one bank to another, or from one account to another*, at the time of each annual interest payment, and within 30 days of the transfer of the property to a new owner, of the following:
- The correct name and address of the bank where the security deposit is kept,
- The amount of the deposit,
- The type of account in which the money has been invested,
- The current rate of interest for that account.
CHECK YOUR LEASE FOR INFORMATION ABOUT WHERE YOUR SECURITY MONEY HAS BEEN DEPOSITED. If you signed a lease make sure to check the lease for this information. Landlords sometimes put the information about the security deposit in the lease.
* If the transfer from one bank to another, or from one account to another occurs les than 60 days before the annual interest payment then the Landlord does not have to give you a notice of this transfer).
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