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Do you get interest on rental deposit?
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I rented a flat in Scotland for a while and I can't remember the details (it was approx 2010) but I am fairly sure I got a (pitiful) amount of interest on the deposit return.0
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It depends on where the agent keeps it. I have got interest on a deposit in the past.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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what happened to you in the old days is irrelevantdancing_star wrote: »I rented a flat in Scotland for a while and I can't remember the details (it was approx 2010) but I am fairly sure I got a (pitiful) amount of interest on the deposit return.
there are only 2 possibilities for the deposit :
1. in a custodial scheme where the scheme has first take of any interest earned. With current interest rates that means there is none left for anyone, LL or tenant.
2 Insurance back scheme. The deposit money is held by the LL/LA in whatever place they want, under the bed mattress, in a current account, in an interest earning account. The tenancy agreement says who gets a share of any interest. Normally it should be the LL as the LL is the one having to pay the insurance premium to actually protect the deposit.0 -
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There is no automatic assumption that money should earn interest while someone else (LL) holds it.
A refundable deposit by definition is the tenant paying £x and the LL returning £x less deductions after a certain period ie end of tenancy. If you expect to receive £x + interest then that would need to be specifically agreed eg as a fixed percentage or linked to an index or relative to the amount of interest earned by the LL (which may be £0).
However without a specific agreement, you just get your deposit back.0
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