Does My Rental Security Deposit Make Interest [Video]

5th Interview with Marc Cunningham of Grace Management & Investment.

PmDave: Does My Rental Security Deposit Make Interest and where does it go?

Marc Cunningham: Colorado law is pretty straight forward on what they allow and don’t allow security deposit wise. Grace Management’s policy is that we hold the security deposit we collect from the tenant that is going to go into an escrow account, trust account and be held in there for the duration of the lease.

And once that tenant vacates it gets returned to that tenant minus any damages, rents that are outstanding water bills any thing that they legally still owe is going to be withheld from them.

PmDave: Does the escrow account make interest?

Marc Cunningham: Colorado law does allow them to make interest in some cities, in the city of Boulder you have to pay interest back to the tenant. Different cities do allow it some don’t, so there is a little bit of difference there.  Yes our security deposits do earn interest but it depends there is no rhyme or reason to it.