Lease landlord tax clause

[Matthew Byers]

Greetings,

I am looking at a lease and it has a clause that says "If the amount of the security depost is in excess of $50 or one month's rent, whichever is greater, and the tenant remains in possession of the premises for at lease six months, Landlord shall pat interest in excess at the rate of 5% per year to be paid annually." My question is what is the point of this clause and how exactly does it work? IE: My tenant pays $300 deposit and the rent is $600. Does this clause still apply? Thanks for any replies.