Escrow - Landlord Forum thread 341245

Escrow by MissKimmie (Upstate NY) on November 30, 2015 @08:27

We are purchasing an apartment building with 9 units. As I understand it, I need to place security deposits in an interest bearing escrow account and give Ts. the name and address of the bank. My questions is how specifically is this done?

The bank told me that I should just use a "checking account" because interest rates are very low now and all the other types of accounts needed minimum balances etc. They said I should have a separate account for each T. Let me add that this is lower end rental and the security deposits that will be transferred to us are small amounts like $350.

[ Reply ] [ Return to forum ]

Re: Escrow by Anonymous on November 30, 2015 @09:07	[ Reply ]

where did you place the security deposit for the three tenants you already have?

Re: Escrow

Re: Escrow by Anonymous on November 30, 2015 @10:12	[ Reply ]

I'm not sure about NY state law, but in my state I can put multiple SDs into a single escrow account -- the goal is to have your SD separate from your operating or personal accounts. Separate accounts per tenant might make it easier to account for interest, if required in NY, but with such small amounts interest will be negligible and it's not worth the accounting effort to maintain separate escrow accounts.

Re: Escrow by MissKimmie (Upstate NY) on November 30, 2015 @14:45	[ Reply ]

Is there someone from NY who can answer this?

Re: Escrow by Katiekate (New York) on November 30, 2015 @15:42	[ Reply ]

What I have always done is open a new 12 month CD. (Lease period is always 12 months). It has my name and the tenant name on it...but I am the only signer. Meaning, only I can cash it out. A receipt is mailed to the tenant. I keep a copy. I have one per tenant. It stays there until move out. When I cash it out..I get a complete receipt ...showing interest paid, redeem costs (if cashed out early). This receipt is part of the final reconciliation mailed to tenant within 30 days of leaving.

Re: Escrow