As we covered in our series on deposits there is interest on both pet damage deposits and security deposits and it is very easy to figure out how much the interest is using the Residential Tenancy Branch interest calculator on their site. The real question here is how do they figure out the percentage each year?
We have to search in the Residential Tenancy Regulations for this answer. Regulation 4 in part 1 states that the interest paid on deposits is 4.5% below the prime lending rate of the principal banker to the Province on the first day of each calendar year, compounded annually. What does this mean for you? Unless the prime rate exceeds 4.5%, there will continue to be no interest payable on security deposits for tenancies that began after January 1, 2009.
-- Hunter Boucher and Al Kemp
We have to search in the Residential Tenancy Regulations for this answer. Regulation 4 in part 1 states that the interest paid on deposits is 4.5% below the prime lending rate of the principal banker to the Province on the first day of each calendar year, compounded annually. What does this mean for you? Unless the prime rate exceeds 4.5%, there will continue to be no interest payable on security deposits for tenancies that began after January 1, 2009.
-- Hunter Boucher and Al Kemp
No comments:
Post a Comment