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  • PA - Interest Earned on Security Deposit

    I am trying to figure out how to deduct the 1% adminstration fee on a tenant's secruity deposit based on the PA law listed below:

    (b) Whenever any money is required to be deposited in an interest-bearing
    escrow savings account, in accordance with section 511.1, then the lessor shall be entitled
    to receive as administrative expenses, a sum equivalent to one per cent per annum upon the
    security money so deposited, which shall be in lieu of all other administrative and custodial
    expenses. The balance of the interest paid shall be the money of the tenant making the
    deposit and will be paid to said tenant annually upon the anniversary date of the
    commencement of his lease.

    Do I deduct the 1% admin fee from the total interest that was earned?

  • #2
    Re: PA - Interest Earned on Security Deposit

    You have already been informed that this happens AFTER the tenant has been in residency THREE YEARS. Your tenant was in residency for 33 months. Less than the three year requirement.

    Holy hell learn how to read.

    Comment


    • #3
      Re: PA - Interest Earned on Security Deposit

      Let's say the tenant earned $5.00 interest for the duration their deposit drew interest. You would deduct from that 1%, or .01. This means that you would multiply $5.00 times 1%, or .01 in decimals. You would arrive at .01 cents.

      The interest earned would likely be such a picayune amount that it would be of no value to the landlord to even deduct the 1% anyway.

      Comment


      • #4
        Re: PA - Interest Earned on Security Deposit

        Excuse me. To clarify, that should read .05 cents. Not .01. Here's another example. Say the interest earned is $25.00. You would multiply that by .01 in decimals. Which would give you a grand total of .25 cents, which is 1% of the admin. fee.

        Comment


        • #5
          Re: PA - Interest Earned on Security Deposit

          It is NOT 1% of $5. It is 1% of the total deposit, including the interest they would have earned from month 25 to month 33. Any interest earned before month 25 is yours, not theirs.

          "a sum equivalent to one per cent per annum upon the security money so deposited"

          If you put this money in a standard savings account, it would have earned less than 1/2 of 1% of interest (that is .005). And it would only have earned it for 9 of 12 months.

          To walk you through this:
          1)Take your interest rate on that account, multiply it by the original deposited amount, then multiply it by .75 to account for only 9 of 12 months. That is the interest they would have earned. Add that to the original deposit to make the total of money they now have on deposit with you.
          2)Then take the total and multiply it by .01 to see how much you deduct for your fee.
          3)Subtract the fee (in 2 above) from the total (from 1 above) to see how much you owe them back.

          After you do this, you can start deducting damages.

          Comment


          • #6
            Re: PA - Interest Earned on Security Deposit

            Learn to read and comprehend. Nobody said it was "1% of $5". The $5.00 figure was used AS AN EXAMPLE. Wake up and pay attention.

            Comment


            • #7
              Re: PA - Interest Earned on Security Deposit

              Originally posted by Unregistered View Post
              It is NOT 1% of $5. It is 1% of the total deposit, including the interest they would have earned from month 25 to month 33. Any interest earned before month 25 is yours, not theirs.

              "a sum equivalent to one per cent per annum upon the security money so deposited"

              If you put this money in a standard savings account, it would have earned less than 1/2 of 1% of interest (that is .005). And it would only have earned it for 9 of 12 months.

              To walk you through this:
              1)Take your interest rate on that account, multiply it by the original deposited amount, then multiply it by .75 to account for only 9 of 12 months. That is the interest they would have earned. Add that to the original deposit to make the total of money they now have on deposit with you.
              2)Then take the total and multiply it by .01 to see how much you deduct for your fee.
              3)Subtract the fee (in 2 above) from the total (from 1 above) to see how much you owe them back.

              After you do this, you can start deducting damages.


              I appreciate the response. Thanks!!!

              Comment


              • #8
                Re: PA - Interest Earned on Security Deposit

                Originally posted by Unregistered View Post
                I am trying to figure out how to deduct the 1% adminstration fee on a tenant's secruity deposit based on the PA law listed below:

                (b) Whenever any money is required to be deposited in an interest-bearing
                escrow savings account, in accordance with section 511.1, then the lessor shall be entitled
                to receive as administrative expenses, a sum equivalent to one per cent per annum upon the
                security money so deposited, which shall be in lieu of all other administrative and custodial
                expenses. The balance of the interest paid shall be the money of the tenant making the
                deposit and will be paid to said tenant annually upon the anniversary date of the
                commencement of his lease.

                Do I deduct the 1% admin fee from the total interest that was earned?
                OP:

                Go back to your original post "Tenant wants to see Receipts", you posted several days ago with the same interest bit and answer some of the questions asked of you about what you damages are?

                Instead of hanging yourself and everyone else up on this interest bit...seriously who really cares about...maybe $5 interest...give it a ffing break.

                Talk about why you don't want to provide your receipts to the tenant, for the money you are withholding from the tenant?

                What are your damages?, or ordinary wear and tear?

                You keep evading these questions...wotz up?

                Comment


                • #9
                  Re: PA - Interest Earned on Security Deposit

                  Originally posted by Unregistered View Post
                  I am trying to figure out how to deduct the 1% adminstration fee on a tenant's secruity deposit based on the PA law listed below:

                  (b) Whenever any money is required to be deposited in an interest-bearing
                  escrow savings account, in accordance with section 511.1, then the lessor shall be entitled
                  to receive as administrative expenses, a sum equivalent to one per cent per annum upon the
                  security money so deposited, which shall be in lieu of all other administrative and custodial
                  expenses. The balance of the interest paid shall be the money of the tenant making the
                  deposit and will be paid to said tenant annually upon the anniversary date of the
                  commencement of his lease.

                  Do I deduct the 1% admin fee from the total interest that was earned?
                  OP:

                  Go back to your original post "Tenant wants to see Receipts", you posted several days ago with the same interest bit, and answer some of the questions asked of you about what your damages are?

                  Instead of hanging yourself and everyone else up on this interest bit thing...seriously who really cares about...maybe $5 interest...give it a ffing break. If you go to court and harp on this same non issue, you will be sure to piss the Judge off and lose your case.

                  Talk about why you don't want to provide your receipts to the tenant, for the money you are withholding from the tenant?

                  What are your damages?, or ordinary wear and tear?

                  You keep evading these questions...wotz up?

                  Comment


                  • #10
                    Re: PA - Interest Earned on Security Deposit

                    You might notice the only reply posts the OP has responded to are ones favorable to her situation. Those are the only posts the OP thanks. As I just posted on the other thread, people don't want to hear honesty. They want agreement, regardless of whether it's warranted or not.

                    Comment


                    • #11
                      Re: PA - Interest Earned on Security Deposit

                      Perhaps. But perhaps the OP doesn't want to respond to rude posts. I don't see where the OP is disagreeing with anyone. Just the OP refusing to respond to irrelevant questions.

                      Why the OP doesn't want to provide receipts is irrelevant. The OP doesn't have to provide receipts by law. Since there is no requirement to do so, his or her reasons not to want to do this don't matter. We don't need to delve into people's personal business. He or she does not have to provide them. End of discussion. If the matter goes before a court, then the OP must provide proof of the expenses. That is the law. (Remember this is a law forum.)

                      The OP also doesn't want to debate whether the expenses are justified or not to the internet. He or she has been instructed to provide the itemized statement to the tenants as required. If the tenants don't believe they are justified, please allow the tenants to post on here and discuss whether these expenses are damages or W&T. Obviously the OP believes he or she charged for appropriate damages and does not want to debate this with an internet audience. Whether they were justified is not the question that was asked. The OP has no obligation to list his or her expenses here. Please stick to questions and responses on the legality of issues or the legal procedures.

                      His or her initial question was whether the receipts were required to be included with the deposit statement. The answer is NO, unless you live in CA and expenses are over $125.

                      He or she then asked about the interest requirement and the administrative fee. That calculation has been provided. This interest is important and a legal requirement of the itemization of the deposit statement. Whether it totals $5 or $5000 is unimportant. The legal requirement is that it be included. Both of the questions posed have been answered. I see no further need to continue this thread unless the OP has more questions.

                      Comment


                      • #12
                        Re: PA - Interest Earned on Security Deposit

                        Please allow the tenants to post on here? That's a little forward, to think they are even aware of this site or are aware their landlord is posting here.

                        If you see no further need to continue this thread, stop responding. Are you a moderator?

                        Comment


                        • #13
                          Re: PA - Interest Earned on Security Deposit

                          Originally posted by Unregistered View Post
                          Please allow the tenants to post on here? That's a little forward, to think they are even aware of this site or are aware their landlord is posting here.

                          If you see no further need to continue this thread, stop responding. Are you a moderator?
                          Exactly my question...are you ADMIN?
                          Whats rude asking the O.P. a straight up question?
                          Is it rude to ask someone to stop harping on the same question over and over again? Two different threads on
                          the same redundant calculations like this is a accountants thread?
                          Is this a law forum or a accountants forum asking the same thing in two different threads.
                          The O.P. may not be disagreeing with anyone, because he/she won't answer the questions that ARE very relevant to his/her original question. Which is about withholding the tenants security deposit for damages. Which is very relevant to his/her question.
                          The O.P. keeps evading the question...what are your damages? The forum the opportunity to determine whether his/her damages are actual damages or ordinary wear and tear? That's what the court is going to determine.

                          Comment


                          • #14
                            Re: PA - Interest Earned on Security Deposit

                            Originally posted by Unregistered View Post
                            Perhaps. But perhaps the OP doesn't want to respond to rude posts. I don't see where the OP is disagreeing with anyone. Just the OP refusing to respond to irrelevant questions.

                            Reply 1: Perhaps you have not read the other thread. In which the O.P. would not answer very relevant and good questions relevant to his/her post: "Tenant wants to see receipts for withholding S.D."?
                            Just the O.P. refusing to answer very relevant questions to his/her post.
                            When you go to Walmart to return something, is it irrelevant to withhold the receipts from the store clerk because she wants to see the receipts before she gives you your money back?
                            When the O.P. was asked those very relevant questions in the other thread, she/he failed to answer, and went and started another thread on the same VERY REDUNDANT issue.

                            Why the OP doesn't want to provide receipts is irrelevant. The OP doesn't have to provide receipts by law. Since there is no requirement to do so, his or her reasons not to want to do this don't matter. We don't need to delve into people's personal business. He or she does not have to provide them. End of discussion. If the matter goes before a court, then the OP must provide proof of the expenses. That is the law. (Remember this is a law forum.)

                            Reply 2: Why the L.L. is withholding the receipts and tenants S.D. is a TOTALLY RELEVANT ISSUE. The L.L. may not have to provide the receipts as a matter of law before trial, but I do believe that a L.L. is required as a matter of law to give the tenant a itemized list of damages, and the costs of each damage as has been explained in this thread and every other thread dealing with this type of issue regarding S.D.'s in this forum. And if so, why would anyone have a problem showing the tenant copies of the receipts.
                            "We don't need to delve into peoples personal business?" The L.L. voluntarily came here for our honest advice or opinions on his/her issue presented. Did the L.L. come here to learn how to out maneuver the tenants S.D.?, because they have a beef with one another? That's what it appears to me, as the O.P./L.L. won't answer the questions about his/her damages? If the L.L. as you say must provide proof of the expenses, and is acting in good faith, why would anyone who has good receipts, for alleged actual damages fail to provide them to the tenant?...before trial to avoid all the hassle and expense? That doesn't make sense or sound like good faith, fair dealing to me? [REMEMBER THIS IS A LAW FORUM...NOT A SCIENCE PROJECT OR ACCOUNTANTS FORUM ON WHO IS MORE KNOWLEDGEABLE ABOUT MATHEMATICAL EQUATIONS FORUM] for whatever minuscule amount of money? But I have to give credit to those that patiently and redundantly had to double answer the L.L. interest issue in two different threads.The more important questions the L.L. was asked on the S.D. receipt issue were not answered, which sounds evasive, concealing and withholding to me. Go back and read the questions in the thread.

                            The OP also doesn't want to debate whether the expenses are justified or not to the internet. He or she has been instructed to provide the itemized statement to the tenants as required. If the tenants don't believe they are justified, please allow the tenants to post on here and discuss whether these expenses are damages or W&T. Obviously the OP believes he or she charged for appropriate damages and does not want to debate this with an internet audience. Whether they were justified is not the question that was asked. The OP has no obligation to list his or her expenses here. Please stick to questions and responses on the legality of issues or the legal procedures.

                            Reply 3: Why not? It is to the L.L. benefit to get the forums advice on whether or not his/her damages are legit or not ordinary wear and tear as the court will eventually rule on. A lot of L.L.'s think they can withhold for whatever, make up bogus stuff just to be a dick/*****. Then go to court and find out otherwise and have to pay court costs. To not ask these questions, is not giving good advice.
                            Maybe the forum members here have a right to seek the truth of the matter, as the court also will eventually do. I'm a tenant, if I think the L.L. is being evasive and avoiding good questions, that the court will eventually ask, you have a problem with that? I think you are giving the O.P. bad advice by coddling the O.P. Nobody here asked the O.P. where she/he lives, name, address, case no., tenants name, court, etc. How many people in this world are there that have disputes with their L.L./tenants? Lets see my tenant ruined my rug, left the place a mess, broke a chair, cat pissed on my computer, shot holes in the wall, etc. No the L.L. has no obligation to answer the same questions that a judge will ask him/her in court. The L.L. has no obligation to answer the same questions in court either. Just seems concealing to not voluntarily answer the questions asked.

                            His or her initial question was whether the receipts were required to be included with the deposit statement. The answer is NO, unless you live in CA and expenses are over $125.

                            Reply 4: The O.P. initial question was whether the L.L. had to provide the receipts to the tenant? "The tenant wants to see the receipts for my deductions" "Do I have to provide them"? Which opens all kinds of obvious questions...No.1... Why not?...no answer. What are your damages...no answer. What do you have to hide?...no answer. Then goes an starts another thread on the same redundant non-issue interest question, he/she already got. Talk all that to the Judge when you go to court like the L.L. did and see how he/she reacts, like some of the forum members already did here.

                            He or she then asked about the interest requirement and the administrative fee. That calculation has been provided. This interest is important and a legal requirement of the itemization of the deposit statement. Whether it totals $5 or $5000 is unimportant. The legal requirement is that it be included. Both of the questions posed have been answered. I see no further need to continue this thread unless the OP has more questions.
                            Reply: Are you ADMIN? Is it your call on whether a thread ends or stops? If you are admin you shouldn't be, based on this paragraph alone.
                            If it was for $5,000.00 it would be very important...think? Have to be a pretty big deposit though. Whats more important arguing over calculations for $5 or the tenants S.D. the L.L. is withholding? I see no further need for your input. Really dude who are you to tell others when the thread should end? I would end it because the L.L. does not want to answer the questions asked, and she/he is wasting everyone's time with his/her surreptitious non answers.

                            Comment


                            • #15
                              Re: PA - Interest Earned on Security Deposit

                              I'm sorry you feel that way. This is a public forum. Obviously, ANYONE can post here. Including LLs and tenants if they so wish. It is available to all by way of any search engine. Many tenants do post their legal questions here. Any poster's question will be answered in accordance with the applicable law.

                              It is a legal forum, to advise people of the law. Whether the deductions are damages or wear and tear is not the legal question we were asked to answer. *IF* the question is asked, the forum will be happy to give legal opinions on that issue. But the OP did not ask it. The OP is under no obligation to answer any question. The poster has obviously already answered the question of damages vs. wear and tear himself. Your continued irrelevant questions will not force the poster to answer these. It is a wasted effort to continue on such a tangent.

                              This is not Walmart. A store sets its own return policy to require receipts. Some stores do, others do not. A state sets its own law on whether receipts are required with a deposit statement. Most states have decided they are not. If not required, no one can force their submission prior to a court case. You have stated your opinion that the LL should submit them. If the LL chooses not to, that is his choice. Whether you believe it is fair is not the issue. The law is the issue. An itemized accounting of the deductions on the deposit statement is what is required for a good faith effort from the LL. Receipts are not required by law. Badgering the poster will not force him to include them just because you believe he should. You could continue to ask thousands of these unsolicited, irrelevant questions, but you cannot defend this by believing you have the right to demand that they be answered. In some instances, the poster's failure to answer relevant questions has resulted in the forum's inability to answer their questions. But your questions have no bearing on the ability to answer the legal questions asked.

                              My apologies if the accounting for interest and the administrative fee is boring to you. But since both are addressed in CA Civil Code, and interest is required by this law to be included, the calculations needed to be explained to the poster who did not seem to understand the law.

                              The OP does not wish to address your further questions. You can continue to post them if you wish, but no one will answer them.

                              Comment

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