2024 Annual Security Deposit Interest Alert

Annual Security Deposit Interest Requirement:

As a reminder, the Berkeley Rent Ordinance requires rental housing providers to pay interest accrued on security deposits to tenants residing in units fully or partially covered by Berkeley’s Rent Ordinance. The interest year is from November 1, 2023, to October 31, 2024. The annual interest rate for the 2023- 2024 interest year is 1.2%.

Payment Details:

• Timing: The payment should be made annually each December, either as cash or rent rebate.
• Deadline: The annual payment must be made no later than January 31 to avoid penalties.
• Late Payments: Payments made after January 31 are assessed at an interest rate of 10% for 2023-2024 and at the usual interest rate for any preceding years that were missed.

We've created a document to simplify the reporting process of your tenant's accrued interest and the method by which you'll compensate them. To access the Notice of Annual Security Deposit Interest Payment, click here.