4 ms·

Not a third party escrow, at least for renting in NYC. It is an interest free loan to the landlord or management company for the entire time you live there. U

Not a third party escrow, at least for renting in NYC. It is an interest free loan to the landlord or management company for the entire time you live there. Usually it's the management companies that are really difficult to work with.

robin_reala 4y ago
Shame. UK has had enforced escrow for rental deposits for 15 years and it’s basically solved the problem. https://www.gov.uk/tenancy-deposit-protection https://www.gov.uk/tenancy-deposit-protection
- bregma 4y ago
  Where I live (Ontario, Canada) security deposits are illegal. Simplifies everything and levels the playing field. Key deposits are also illegal. Only thing a landlord can charge is rent (first and last up front) and its legally required to pay interest on the last month's rent (although good luck milking that from most landlords). No need for escrow since to get your last month's rent back you just don't pay your last month. There are, of course, landlords who do not follow the law. As with drug dealers, pimps, and phone companies they generally prey on the less fortunate. Legal aid and the landlord-tenant tribunals keep busy.
CPLX 4y ago
No it’s not. As a landlord you’re required to hold the deposit separately in a bank account and provide information on which account to the tenant. It’s not escrow, the landlord has full control over the account. But it’s not a loan either.
- ThePadawan 4y ago
  Weird, here in Switzerland it's the same but opposite - As a tenant, I have to transfer my security deposit to an account with my own bank and give my bank the permission to tell my landlord which account and how much is in it.
bluefirebrand 4y ago
Tenancy laws in some places I've lived require the landlord to pay it back at the end of the tenancy, plus interest. But the interest rate is set by the tenancy act... So where I live now, legally, landlords have to pay your security deposit back plus an interest rate of 0% Hilarious stuff

robin_reala 4y ago

Shame. UK has had enforced escrow for rental deposits for 15 years and it’s basically solved the problem. https://www.gov.uk/tenancy-deposit-protection https://www.gov.uk/tenancy-deposit-protection

bregma 4y ago
Where I live (Ontario, Canada) security deposits are illegal. Simplifies everything and levels the playing field. Key deposits are also illegal. Only thing a landlord can charge is rent (first and last up front) and its legally required to pay interest on the last month's rent (although good luck milking that from most landlords). No need for escrow since to get your last month's rent back you just don't pay your last month. There are, of course, landlords who do not follow the law. As with drug dealers, pimps, and phone companies they generally prey on the less fortunate. Legal aid and the landlord-tenant tribunals keep busy.

CPLX 4y ago

No it’s not. As a landlord you’re required to hold the deposit separately in a bank account and provide information on which account to the tenant. It’s not escrow, the landlord has full control over the account. But it’s not a loan either.

ThePadawan 4y ago
Weird, here in Switzerland it's the same but opposite - As a tenant, I have to transfer my security deposit to an account with my own bank and give my bank the permission to tell my landlord which account and how much is in it.

bluefirebrand 4y ago

Tenancy laws in some places I've lived require the landlord to pay it back at the end of the tenancy, plus interest. But the interest rate is set by the tenancy act... So where I live now, legally, landlords have to pay your security deposit back plus an interest rate of 0% Hilarious stuff