LANDLORDS: AN IMPORTANT REMINDER - ANNUAL SECURITY DEPOSIT INTEREST REFUNDS MUST BE PAID BY JANUARY 10
Attention: If the December interest refund payment is not made by January 10th, the tenant may recover interest at the rate of 10% by notifying the landlord in writing that the tenant intends to deduct the interest from a future rent payment. See Board Regulation 704.
Once a year in December, the landlord shall return to each tenant the amount of interest accrued by the tenant’s security deposit through October 31 of that year either as a rent rebate or cash payment. (Regulation 702.) The interest rates for the December 2012 refund of security deposit interest have been calculated at 0.5% for the Federal Rate and 0.2% for the Berkeley Rate.
Security Deposit Interest page
Note: To qualify for the Berkeley bank CD rate for a December interest refund payment, the tenant's deposit must have been held in a qualifying account for the twelve months ending the prior October 31st (or since the tenancy began if the tenancy is less than twelve months old) and, when the interest is refunded to the tenant, the landlord must provide the tenant and the Rent Board with the identity of the Berkeley bank account using a Rent Board form.