Question: What is a security deposit?

Answer: Under Connecticut law, a security deposit is any advanced payment made by a tenant which exceeds the first month's rent. It does not matter whether the advanced payment is called a "last month's rent", "pet deposit", etc. Whatever money a landlord takes from a tenant exceeding the first month's rent, will be a security deposit under Connecticut law.

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Question:  Are there limitations on the amount of security deposit which a landlord may take:

 

Answer:    Yes.  If the tenant is over 62 years of age, a landlord may only accept one month’s worth of a security deposit.  In all other Cases, a landlord may only accept two month’s worth of a security deposit.

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Question: Must interest be paid on a security deposit?

Answer: No interest needs to be paid on commercial security deposits. Interest must be paid on residential security deposits. The rate of interest is set yearly by the Banking Commissioner. The interest rates for the last several years are as follows:

October 1, 1973 to September 30, 1982 4.00%
October 1, 1982 to September 30, 1992 5.25%
October 1, 1992 to June 30, 1993         4.00%
July 1, 1993 to December 31, 1993       2.90%
January 1, 1994 to December 31, 1994  2.50% 
January 1, 1995 to December 31, 1995  2.80%
January 1, 1996 to December 31, 1996  3.10%  
January 1, 1997 to December 31, 1997  2.80%  
January 1, 1998 to December 31, 1998  2.60%  
January 1, 1999 to December 31, 1999  2.30%  
January 1, 2000 to December 31, 2000  2.20%  
January 1, 2001 to December 31, 2001  2.40%   
January 1, 2002 to December 31, 2002  1.50%  
January 1, 2003 to December 31, 2003  1.50%  
January 1, 2004 to December 31, 2004  1.50%  
January 1, 2005 to December 31, 2005  1.50%  
January 1, 2006 to December 31, 2006  1.50% 
January 1, 2007 to December 31, 2007  1.50%  

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Question: What must be done with the security deposit once the tenant vacates the property?
 

Answer: The landlord has thirty days within which to act. Within thirty days of the tenant furnishing a forwarding address, or the date the tenant vacates the apartment, whichever is longer, the landlord must furnish the tenant with a statement setting forth any amounts retained from the security deposit and enclose a check for the balance of the security deposit, plus any accrued interest, or must furnish the tenant with the balance of the security deposit plus interest. By law, the landlord may be responsible for up to double the amount of the security deposit for failing to return the deposit.

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Question: May a tenant waive his or her right to interest on the security deposit or pay a security deposit exceeding the limits proscribed by Connecticut law?
 

Answer: No. The tenant may not waive the security deposit provisions of Connecticut's Landlord and Tenant Law.

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Question: Must a landlord keep the tenant's security deposits in a separate bank account?
 

Answer: Yes. By law, the landlord may not commingle the security deposit funds with the landlord's personal funds.

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Question: May a landlord ask for and receive an additional security deposit for pets?
 

Answer: So-called pet deposits are subject to the overall limitations on security deposits mentioned above. In other words, whether the deposit is called a pet deposit or last month rent, it is considered a “security deposit”. A landlord may only accept one month’s worth of a security deposit if the tenant is over 62. In all other cases, a landlord may only accept two month’s worth of a security deposit.

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Question:  May I purchase keyboxes and keypads at the board office?

 

Answer:     Yes, keyboxes are $90.10 made payable to the CMLS.  Keypad purchase price is $265 plus pro-rated usage fees.

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Question:   When must I complete the required 4-year cycle on the Code of Ethics course?

 

Answer:     The current 4-year period ends on December 31, 2008.  If you are a new member who attended, or will attend, the GFBOR orientation course between January 1, 2005 and December 31. 2008 your obligation will be fulfilled.  All other members must complete a 3-hour CE course on the Code of Ethics during the period. If you have taken this course at another location, documentation must be submitted to the board office prior to 12/31/08.