SF Landlords: How Are You Handling the 5.2% Security Deposit Interest Rate?

[Jamie Petraglia]

How are landlords in SF handling the security deposit law that requires them to pay interest to residents on their deposits? According to the SF Rent Board, the interest rate owed on deposits for the period from March 1, 2024, through February 28, 2025, is 5.2%! With the recent rate cut by the Fed, most banks are not offering this rate. How are SF landlords managing this situation?

[Jamie Petraglia]

Yeah, it's pretty wild! A property manager brought it to my attention, and I looked further into it. Here is the link I found on SF.gov - https://www.sf.gov/reports/march-2024/security-deposits#inte...

They raised it from 2.3% the previous year! I'm not sure if landlords are enforcing this. I can't understand how they can be required to pay this if the banks don't even offer this rate with the recent rate cuts. 

Good move with Reno!