Interest Paid on Security Deposits?

[Shafi Noss]

I'm studying for my license and ran into this paragraph on the study materials

"The landlord must return security deposits within 45 days of lease
termination; on security deposits of $50 or more, the landlord must also
pay the tenant simple interest on that deposit. The specific interest
rate varies, based on Maryland law."

Is this true? I've never heard about it before. Does anyone know how to find the appropriate interest rate is for a particular lease?

[Jill F.]

Originally posted by @Shafi Noss:

I'm studying for my license and ran into this paragraph on the study materials

"The landlord must return security deposits within 45 days of lease
termination; on security deposits of $50 or more, the landlord must also
pay the tenant simple interest on that deposit. The specific interest
rate varies, based on Maryland law."

Is this true? I've never heard about it before. Does anyone know how to find the appropriate interest rate is for a particular lease?

It varies from state to state. In Ohio, a landlord is required to pay interest on any funds exceeding one month's rent that are held for longer than 6 months. No interest is required  to be paid on funds up to one month's rent. Deposit funds due back to tenant must be returned with 30 days of move-out with a statement of deductions. HOWEVER, based on my experience buying properties, Many Ohio landlords routinely violate this provision and take more than one month for a deposit without paying interest-- tenant's rarely know the rules either. It's a pita when we take over newly purchased properties...