Tenants in Rent-Control Properties in City of Los Angeles: You are owed YEARLY payments for interest on your security deposit!
As a tenant living in a rent-stabilized property in the city of Los Angeles, you have specific rights regarding the security deposit you've paid to your landlord, including the right to receive interest on it each year, as required by the Los Angeles Rent Stabilization Ordinance (RSO).
Under the Los Angeles Municipal Code (LAMC) Section 151.06.02, your landlord must pay you annual interest on your security deposit. Each year, typically in December, the Los Angeles Housing Department (LAHD) publishes the official interest rate applicable for the following calendar year. Below are the interest rates for the past five years:
Your landlord is obligated to pay this interest directly to you or apply it as a credit toward your rent once per year. According to LAMC Section 151.06.02(E), your landlord must notify you clearly and in writing about the method they will use for payment each year.
What if my Landlord doesn't pay?
If your landlord does not pay or credit your deposit interest annually as required, you have the right to file a formal complaint with LAHD. This could lead to penalties or further legal action against your landlord, as specified under LAMC Section 151.10.
Tenants should take the follow proactive steps to protect their rights:
- Regularly check the annual interest rate announced by LAHD each December by going to LAHD Website
- Keep detailed records of your original security deposit payment, and note any interest payments or rent credits received each year.
- Ensure your landlord provides you with a written notification every year clearly stating the method they have chosen for interest payment or credit.
