Depositing Security deposits - Landlord Forum thread

Depositing Security deposits by Anonymous on November 10, 2006 @14:13

I know some ll's (myself included), don't always deposit the security given to them and maintain it in an interest bearing account. I'm curious to find out if other ll's inform the tenants of the bank the money is deposited in and maintain the money in that account.

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Re: Depositing Security deposits by Van on November 10, 2006 @14:38	[ Reply ]
I tell my tenants that their deposit will be held in a savings account where I put all of my tenants security deposit money.I do not give them the account number and only give them back the interest amount accumulated if they inquire about it.

Re: Depositing Security deposits by Anonymous on November 10, 2006 @15:12	[ Reply ]
All my tenants security go into a Escrow account. They are told the name and address of the bank. It is my understanding that it is the law that they be deposited. The first two years of interest are mine for admin. fee and the balance of interest is theirs.

Re: Depositing Security deposits by Terry on November 10, 2006 @17:42

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The requirements here are completely state (and in some cases "local") law driven.

If your state requires that you notify the tenant within so many days of them giving it to you where the money is deposited, etc...I would strongly suggest you do it. Otherwise if/when the time comes for you to keep some or all of that deposit and you haven't complied with the laws in your state, you stand to lose your claim or worse.

In CA we are fortunate. We do not have to pay interest (except in rent controlled areas). We do not have to notify tenant where money is. We do not have to have separate accounts for each tenant in their name. In fact we don't have ANY restrictions other than we had better follow 1950.5 when we account for the deposit when they vacate.

Re: Depositing Security deposits

Re: Depositing Security deposits by Lakeman on November 10, 2006 @20:18

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As mentioned, it's specific to your State/locale.

The Statutes in numerous states may even provide you with an option of interest or non-interest bearing = your choice.

As a newbie years ago all I heard was interest bearing account for the SD and other restrictive type requirements - a quick check of the Statutes resolved those and perhaps it will for you also.

Re: Depositing Security deposits