Good evening BPers. I recently joined BP and this is my first post.
I just became a landlord on my first buy & hold. I know that in the state of NJ (and some other states) tenant has to be notified by landlord in 30 days where the deposit was placed, including: name of the bank, type of account, interest rate, etc.
Do you have a template of a notification letter that I could use? I don't want to miss anything.
Thank you in advance.
Hi Thomaz! I live in Washington state, where we are also required to disclose info about where the deposit is held. We write it into the agreement rather than sending a separate letter.
Our wording is as follows, which is not what you are asking but may be of help:
Deposits are held in trust at Umpqua Bank, Hazel Dell branch, per RCW 59.18.270. Tenant is not entitled to any interest earned on the security deposit. If Landlord sells or assigns the premises, Landlord shall have the right to transfer Tenant’s deposit to the new owner or assignee to hold under this agreement, and upon so doing Landlord shall be released from all liability to Tenant for return of said deposit.
I too simply put the information in the lease. Name of institution, checking account, and that it is a non-interest bearing account is how our lease is drafted. This makes it simple and will not be overlooked. Some judges may frown on a landlord for violating this provision. I try and dot the i's and cross the t's and not give any judge a reason to side against me in any litigation.
I didn't include it in the lease this first time, so I will have to notify them. I think it's a great idea to add it to lease. Here's what I have in my lease:
"In compliance with New Jersey Code § 46:8-19, Landlord shall place the security deposit in a bank savings account or otherwise as required by the statute, and within 30 days provide the tenant with written notice of the deposit’s location, amount and interest rate. Interest accrued on said deposit will be paid to the tenant annually."
Yes; send a seperate letter right away this time and next time put it in the lease. That's what I always do.
Done, thank you.
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