A. A lessor of residential real property who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee computed from the date of the deposit at a rate of one-hundredth of a percent (0.01%) per year on any such deposit held by the lessor for more than one year, provided, however, that all terms and conditions of the lease have been fully complied with by the lessee. In the event the lessee fails to fully comply with all terms and conditions of the lease, the lessor may retain all interest earned on any such security deposit.
B. When a lease is terminated by either party and interest on a security deposit is due, the lessor has the right to inspect the apartment for damages in order to determine whether the security deposit shall be refunded, and should there be damages in excess of the amount of said security deposit, the interest due thereon need not be paid but may be applied to reduce the damages.
C. When the term of the lease is for two (2) years or less, the interest due the lessee on the security deposit shall be retained by the lessor and paid to the lessee within thirty (30) days after the end of the term, upon inspection of the premises by the lessor and determination that no damages, other than those caused by ordinary use, have occurred.
D. When the term of a lease is greater than two (2) years, the interest owed thereon by the lessor shall be paid every two (2) years and at the expiration of the lease, in each instance after an inspection for damages by the lessor.
E. When a lease in excess of six (6) months is renewed, at its expiration the lessor shall pay the lessee all interest accrued to the renewal date within thirty (30) days after said expiration date. (Ord. 75-26-101; 1985 Code; Ords. 92-08-36, 16-02-09)