Below is the penalty to which my question refers.
- The landlord NEVER gave info on where the deposit was held (at the outset or annually) as is required by law.
- The landlord also changed the account where the deposit was held over the time in question and was required by law to notify tenant of the change but never did.
- Tenant asked landlord (in writing) for dated proof that both of these things were complied with as the law dictates and landlord could not provide.
Can/Does this apply after the lease has ended? Meaning, can the 7% be collected along with the return of the security deposit?
Since it is an annual 7% penalty, if the lease was 5 years is the penalty added for each year? And if so, should it compound? Or does this not apply at all because it can only be applied to rent and is not owed to the client otherwise?
PENALTY Notice of Deposit of Security Funds
Landlords are required to give tenants a statement in writing including the name and address of the investment company, bank or savings and loan association along with the type of account, current rate of interest and amount deposited within 30 days of receipt of a security deposit. This notice may appear in the lease. The landlord must notify tenants within 30 days of transferring the security deposit money to a new landlord or moving the security deposit to another account or bank. If notification is not given or if the security is not deposited or invested in accordance with this law, the tenant has the right to require that the security deposit, plus 7 % per year be applied toward any rent due. This request must be made in writing. However, after giving the landlord written notice the tenant must allow the landlord 30 days to comply with the annual interest payment and notice requirements. The 30-day allowance is not required if the landlord failed to properly deposit the initial security deposit money. At no time thereafter, while the tenant occupies the unit, can the current landlord ask for or collect another deposit.