Landlords in San Francisco are required by legislation to pay tenants annual curiosity on their safety deposits. This curiosity is calculated based mostly on the prevailing passbook financial savings fee, which fluctuates over time. For instance, if the speed is 2%, a tenant with a $3,000 safety deposit would obtain $60 in curiosity after one 12 months. The precise calculation methodology entails multiplying the deposit quantity by the present relevant rate of interest.
This authorized requirement safeguards tenants’ monetary pursuits by making certain their deposits retain worth regardless of being held by the owner. Traditionally, this safety arose from recognizing that safety deposits characterize substantial sums for tenants, and the accrued curiosity mitigates the impression of inflation and misplaced funding alternatives. Making certain landlords adhere to those laws helps preserve a good and balanced rental market.
