If you collect last month’s rent, you need to give the tenant a receipt that lists the amount of the rent collected, the address of the property to which it applies, and your name and address. Landlords must pay interest on last month’s rent. The tenant must provide a forwarding address where the interest may be sent annually, and they should have the option of deducting this amount from the rent. The law does not require last month’s rent to be deposited into an escrow account. Where it is, however, a landlord can pay the tenant the actual interest earned rather than the 5% that is otherwise due.
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