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Updated almost 3 years ago,
Security Deposits: Asking Tenants to Deduct Interest Themselves
My landlord association in MA has a security deposit receipt form that states the following: "To save time, you should deduct the interest amount from your rent check each year. Ask me and I will tell you how much to deduct!"
This sounds like rather casual and unprofessional language to me. Is there a legal motive for this language? For example, does putting the onus on the tenant alleviate responsibility if the landlord forgets to pay the interest?
Note: I know that I should ask the association why, and I will, but their website is currently down. I figure the BP community will have broader advice, as well.
Here is the full text on their form: "You are entitled to interest on the security deposit at the rate of either 5% per year or, if the rate at which the bank holding your deposit pays less interest, the rate paid by the bank. To save time, you should deduct the interest amount from your rent check each year. Ask me and I will tell you how much to deduct!"
Thanks!