Q. I received a cheque for $15 from my Jewish landlord for interest earned on the last month rent. My rent increased by about $30 so I paid the $30 and was credited the $15. Do I have to return the cheque?
A. Horav Shlomo Miller’s Shlit”a opinion is that the $15.00 cheque should be returned as it is interest. (Even if paid by a corporation, however, there are Poiskim who disagree). They should be returned anyway since you are not being credited for the full amount due to you. The normal practice of landlords today is not to pay interest on the Last Month Rent deposit, but rather to use it to update the LMR as rent increases every year. That is what the Landlord and Tenant Board recommends. To avoid this being ribis, the landlord should instead of granting you a larger credit and thereby increase the value of the LMR deposit, rather not increase the amount you would have to pay for staying that last month, maintaining the rent charge as it was in the first year of the lease.
Rabbi A. Bartfeld as advised by Horav Shlomo Miller Shlit”a
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