ReLISTO will start publishing the questions we receive from Landlords and Residents. Today question was in regards to calculating the various interest rates one may have over a course of one year.
Question:
The interest rate in effect in June 2017 was 0.6%, this rate changed effective March 1st 2018 to 1.2%. Therefore if a tenant moved in June 1st 2017 you should calculate 9 months at the 0.6% rate and 3 months at the 1.2% rate which began on March 1st 2018.
Your calculation table shows the interest rate all calculated at the 1.2% rate which is surely incorrect…?
ReLISTO Response:
Thank you for your questions regarding the calculation of security deposit interest using the ReLISTO calculator. ReLISTO spent a considerable amount of time speaking with the various experts including the SF Rent Board when developing the calculator and we covered this situation extensively. In addition, the answer can be found below in The San Francisco Administrative Code Sec 49.2(g) PAYMENT OF INTEREST ON SECURITY DEPOSITS.
“The interest rate payable each year under this Chapter shall be the interest rate in effect on the tenant’s immediately preceding annual rental anniversary date for each applicable year and/or the date that the tenant vacates the unit.”
The SF Rental calculator will therefore calculate the interest once a year, based on the Anniversary date as stipulated in the Administrative Code. The only exception to this annual calculation is when the tenant vacates the Premises at which time they are due a prorated interest. The San Francisco Rental Calculator will also calculate this mount when the user selects the box “tenant vacating”