Interest on Security Deposit in Sacramento

[Peter Green]

I have a tenant in Sacramento, CA requesting interest on his Security Deposit.

He claims the last property management company gave it to him.

My research has provided me with the following...

Paying interest on security deposits

There is no state law that requires payment of interest on security deposits. Rental owners are not required to pay interest on security deposits to their residents unless a local ordinance requires it. Currently there is no local ordinance in the eight-county Sacramento Valley area which requires the payment of interest on security deposits.

Does any know about Sacramento and interest plz ?

It is also not one of our rent control cities, yet...

[Nick G.]

@Peter Green Sounds like somebody's trying to pull a fast one on you. Tell them to take a hike.

[Peter Green]

Thx

[David Hutson]

@Peter Green,

I agree.  Tenants don't get interest on their security deposits.  That being said, the security deposits you are holding should be held in non-interest bearing accounts separated from other accounts.

David

[Keith Weigand]

Ditto. Just keep them in separate accounts. This is the first I heard about a tenant asking for interest. At least he/she tried.....

[J Adams]

I do not agree with the sentiment here. Though it may not be legally required to have interest-bearing security deposits it also does not legally bar you from giving it. The story is short, but the tenant could have came from a state that did require interest or the landlord was pretty awesome.