Security Deposit Question- Anniversary Date

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”

ReLISTO Calculators- Website Status

6/10/2017- Due to the great work of our dev team, calculator is back online and working great. Use our calculators to check the amount of interest due on security deposits, rent board fees and allowable rent increases. http://relistodev.wpengine.com/calculators/

Our new website will be a work in progress over the next week as we ensure content, flow and functionality have all been properly transferred.

Thank you

Eric Baird- President

6/9/2017- Users may be experiencing difficulties in reaching our calculators on both relisto.com and our many partner websites. We are working on this matter and will update when fixed. Thank you for your patience.

San Francisco Security Deposit Interest Rates

The Current San Francisco Security Deposit Interest is 0.2% for March 2016- February 2017:

The ReLISTO Security Deposit Interest Calculator SF Rental Calculator is for San Francisco landlords and tenants to easily determine the amount of security rent board fees and allowable rent due. Save, email or print results. Summarized below are the interest rates for prior years as well as rules and details of the ordinance.
San Francisco Security Deposit Interest Rates 1983-2017

September 1, 1999- August 31, 20005.0%CalculateSeptember 1, 1998- August 31, 19995.0%CalculateSeptember 1, 1997- August 31, 19985.0%CalculateSeptember 1, 1996- August 31, 19975.0%CalculateSeptember 1, 1995- August 31, 19965.0%CalculateSeptember 1, 1994- August 31, 19955.0%CalculateSeptember 1, 1993- August 31, 19945.0%CalculateSeptember 1, 1992- August 31, 19935.0%CalculateSeptember 1, 1991- August 31, 19925.0%Calculate

Date Range	Interest	Interest Calculator
March 1, 2016- February 28, 2017	0.2%	Calculate
March 1, 2015- February 29, 2016	0.1%	Calculate
March 1, 2014- February 28, 2015	0.3%	Calculate
March 1, 2013- February 28, 2014	0.4%	Calculate
March 1, 2012- February 28, 2013	0.4%	Calculate
March 1, 2011- February 28, 2012	0.4%	Calculate
March 1, 2010- February 28, 2011	0.9%	Calculate
March 1, 2009- February 28, 2010	3.1%	Calculate
March 1, 2008- February 28, 2009	5.2%	Calculate
March 1, 2007- February 29, 2008	5.2%	Calculate
March 1, 2006- February 28, 2007	3.7%	Calculate
March 1, 2005- February 28, 2006	1.7%	Calculate
March 1, 2004- February 28, 2005	1.2%	Calculate
March 1, 2003- February 29, 2004	1.2%	Calculate
August 4, 2002- February 28, 2003	3.4%	Calculate
September 1, 2001- August 03, 2002	5.0%	Calculate
September 1, 2000- August 31, 2001	5.0%	Calculate
September 1, 1990- August 31, 1991	5.0%	Calculate
September 1, 1989- August 31, 1990	5.0%	Calculate
September 1, 1988- August 31, 1989	5.0%	Calculate
September 1, 1987- August 31, 1988	5.0%	Calculate
September 1, 1986- August 31, 1987	5.0%	Calculate
September 1,1985- August 31, 1986	5.0%	Calculate
September 1, 1984- August 31, 1985	5.0%	Calculate
September 1, 1983- August 31, 1984	5.0%	Calculate

The San Francisco Administrative Code requires landlords to pay interest on security deposits held over one year on residential property. Interest payments apply to all residential rental units in San Francisco except for government subsidized properties.

Interest is payable on the tenant’s “annual due date”. If the tenant vacates before one full year of occupancy, no interest is due. Where a tenant vacates after one year of occupancy but before the next annual due date, the interest payment for the partial year period must be pro-rated and calculated using the interest rate in effect on the date the tenant vacates. Generally, the tenant is owed simple interest on their annual due date at the rate in effect when the security deposit interest payment is due. Pursuant to Chapter 49, if interest is owed for multiple years, the interest may not be compounded.

The landlord has the option of paying the security deposit interest to the tenant in the form of either a direct payment or a credit against the tenant’s rent. For units that are covered by the Rent Ordinance and subject to the annual Rent Board fee, Section 37A.6 of the San Francisco Administrative Code allows the landlord to deduct 50% of the annual Rent Board fee from the security deposit interest payment due to the tenant each year.

Security Deposit interest must be paid within two weeks of the date the tenant vacates. However, subject to the limitations and requirements set forth in Section 1950.5(e) of the California Civil Code, a landlord may retain a portion of the unpaid accrued interest where the amount of the security deposit alone is insufficient to cover unpaid rent, repair of damages to the premises caused by the tenant, or necessary cleaning of the premises.

Generally, disputes concerning security deposits or security deposit interest issues are decided in Small Claims Court. The Rent Board does not have jurisdiction over these disputes and the Rent Board staff cannot give legal advice concerning these issues. Please consult an attorney or appropriate agency for specific advice.

Visit the San Francisco Rent Board for Most Current Information