Get Ready to Cut Your Tenants a Check [Analyze This]

by Osman Parvez
Rates remain far from normal.  In case you forgot, here's a little visual reminder. 

The chart above shows the 1 mo average CD rate (blue) compared to the required rate for tenant security deposits in the City of Boulder (red).     

Someday we'll return to normal, maybe.   Don't expect it anytime soon, however. 

Though the required rate is only 0.16%, landlords must track and make this payment to their tenants.    For a fairly typical $2400 per month lease in Boulder, you're required to send your tenants a check for $3.84.  

Tenant security deposit data courtesy of the Boulder Area Rental Housing Association (BARHA).   If you're a serious income property investor in Boulder, become a member.   There is no substitute.    

The average 1 month CD rate is the combination of two series:  The 1 Month Secondary Market Rate (discontinued) and the 1 Month CD Rate on Non-Jumbo Deposits.

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Please Note

This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.