Use this letter in states that require landlords to hold security deposits in interest-bearing accounts and pay the interest to tenants. This applies at the end of your tenancy when interest hasn't been paid, or annually if your state requires yearly interest disbursements. Not all states have this requirement, so verify your state's law before sending.
[YOUR_NAME] [YOUR_ADDRESS] [CITY_STATE_ZIP] [DATE] [LANDLORD_NAME] [LANDLORD_ADDRESS] [LANDLORD_CITY_STATE_ZIP] Re: Demand for Security Deposit Interest Payment Rental Property: [PROPERTY_ADDRESS] Lease Dates: [LEASE_START_DATE] through [LEASE_END_DATE] Security Deposit Paid: $[DEPOSIT_AMOUNT] Dear [LANDLORD_NAME], I am writing to formally demand payment of accrued interest on my security deposit of $[DEPOSIT_AMOUNT], held during my tenancy at the above-referenced property from [LEASE_START_DATE] through [LEASE_END_DATE]. Under [STATE] law ([STATUTE_REFERENCE]), landlords are required to hold security deposits in an interest-bearing account and to pay accrued interest to the tenant [annually / at the end of tenancy]. During my tenancy of [TENANCY_DURATION], I did not receive any interest payments on my deposit. Based on my calculations using [the applicable statutory rate / the prevailing savings account rate], the approximate interest owed is $[ESTIMATED_INTEREST]. I request the following: 1. Payment of all accrued interest on my security deposit for the full duration of my tenancy. 2. Identification of the financial institution where the deposit was held, as required by [STATE] law. 3. The account number or reference number for the deposit account, if applicable. [STATE] law requires landlords to notify tenants of the bank name and account information where their deposit is held. I have no record of receiving this notification during my tenancy. Please remit the interest payment to the address listed above within [RESPONSE_DAYS] days. Failure to pay the required interest may entitle me to additional remedies under [STATE] law, including [PENALTY — e.g., "the right to apply the deposit as rent" or "statutory penalties"]. If you have questions, please contact me at [YOUR_PHONE] or [YOUR_EMAIL]. Sincerely, [YOUR_NAME]
Replace all [PLACEHOLDER] fields with your actual information before sending.
Verify that your state requires landlords to pay interest on security deposits — not all states do. States that commonly require it include Connecticut, Florida, Illinois, Maryland, Massachusetts, New Jersey, New York, and Virginia.
Check whether your state specifies a minimum interest rate or allows the prevailing bank rate.
Calculate the approximate interest owed so you have a baseline figure for your demand.
Replace all [PLACEHOLDER] fields with your actual information and the correct state statute.
Send via certified mail with return receipt requested and keep a copy for your records.
If you are still a current tenant demanding annual interest, adjust the letter to request ongoing annual payments rather than a final lump sum.
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