Social Services Commission, Housing Questions, Fair Rent and Security Deposits
The Stamford Social Services Commission serves as the City's Fair Rent Commission. In this capacity, the Commission receives, investigates, processes and resolves tenant complaints alleging unfair rent increases, service reductions or retaliatory actions.
In addition to overseeing matters relating to fair rent, the Commission's Coordinator has day to day responsibility for responding to citizen inquiries and providing advice on a wide range of housing related issues, including those involving the respective rights and responsibilities of landlords and tenants under Connecticut law.
Questions about security deposits arise with regularity. Because both landlords and tenants are confused as to their purpose, ownership and the rules for their return, their treatment often leads to a breakdown in the relationship.
The Social Services Commission is providing the following basic information in an effort to alleviate a frequent source of landlord tenant disputes.
What Is A Security Deposit?
A security deposit is any advance rental payment other than an advance for the first month's rent or a deposit for a key or any special equipment.
Whose Property Is A Security Deposit?
Although a security deposit is the tenant's property, the landlord has possession of the deposit and, under certain circumstances, may gain a right to all or some of it.
Where Should the Landlord Hold the Security Deposit?
The landlord must keep the security deposit in an escrow account in a Connecticut bank.
How Large A Security Deposit Can A Landlord Require?
Tenants under the age of 62 can be required to pay up to two month's rent as a security deposit; tenants who are 62 or older may not be charged more than one month's rent.
Do Landlords Pay Tenants Interest On Security Deposits?
Yes. Landlords must pay tenants interest on security deposits. The interest rate changes annually as determined by the State Banking Commissioner. On a yearly basis landlords must either pay all accrued interest directly to their tenants, or apply the interest as a credit against the tenants' rent for the first month of the new lease year.
What If A Tenant Is Late Paying Rent?
Tenants forfeit interest on their security deposits for any month in which they are more than ten days late paying their rent. The only exception is when a tenant's rental agreement already contains a late charge for overdue rental payments.
How Can Tenants Ensure Their Security Deposits Will Be Returned?
Tenants should carefully note the condition of their apartment when they first move in. They should confirm that condition in writing with their new landlord and, if possible, take pictures as well. They should make all rental payments on time, and repair any damage they cause. Once they have decided to move, tenants should notify their landlords in writing. When they move they must provide written notice of a forwarding address to the landlord. Because landlords rely on this information when they return the security deposit, tenants should send this notice by certified mail, requesting a return receipt. Before moving out, if possible, tenants should inspect the apartment together with their landlord and return their keys.
How Much Time Do Landlords Have To Return Security Deposits?
Landlords have thirty days within which to return security deposits, including interest or to provide tenants with written notice of the damages they are claiming. Landlords' written notices of damages must itemize the nature and amount of tenant damages, including any unpaid rent or utility payments, and must be accompanied by the balance, if any, of the tenant's security deposit not being claimed for damages, plus any unpaid interest. The only exception to the thirty day rule occurs when tenants have failed to provide a written forwarding address. In that case, landlords are not required to return security deposits or provide notices of damages until fifteen days after receipt of a forwarding address, in writing.
What If A Landlord Does Not Return Security Deposits On Time?
If a landlord does not return a security deposit with interest or provide a written notice of damages within the statutory time limits, the landlord may have to pay the tenant twice the amount of the security deposit. Tenants may pursue this remedy in court.
What Records Should Tenants Keep?
Tenants should save their leases or rental agreements, all rent checks or receipts and copies of the written forwarding address notices that they have provided their landlord. They should keep these records until they have settled all accounts with their landlord and the landlord has returned their security deposits, including interest.
Do Tenants Who Fail To Leave After Their Rental Periods End Have To Pay Additional Rent?
Unless they have made other arrangements with their landlord, preferably in writing, tenants are expected to leave when their leases expire or when their periodic tenancies end, usually at month's end. Tenants who do not leave before the next rental period starts may have to pay additional rent. Tenants who fail to pay additional rent owed may lose all or part of their security deposits.
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