Security deposit refunds

[Linda Thomas]

Hello,

Do you charge an administrative fee when drawing up an itemized list for the security deposit refund? if so, how much? does it vary by state? 

this is from google?  property owners operating in the state of Pennsylvania who collect the security deposit of more than $100, and place it in an interest-bearing escrow account, must pay the interest earned to the resident each year. Property owners may collect 1% of the interest as an administration fee. 

what if you didn't put it in an escrow account? how do you know how much interest to apply? 

[Amanda Janes]

I'm not familiar with PA laws; however, I will say that issuing a security deposit disposition in Ohio and Tennessee is mandatory for landlords/PM companies. IMO this is not an expense the tenant should ever incur as the landlord/PM company is legally obligated to provide one. With that said, I could understand a PM company charging the owner of the property for this as an "al a carte" item, if they aren't offering full-service property management services. 

Regarding the interest/admin fee, if you didn't put it in an interest bearing account, you cannot charge an admin fee. Most interest bearing accounts would yield minimal interest and would not be worth your time trying to calculate or divide amongst the "participating" tenants.