Hey all, I'm wondering what you all do when given a security deposit. Do you immediately put it in an escrow account or do you just keep it in your personal account? I've heard about landlords that pocket the deposit and then pay back their tenant when the lease is over- is this common? Overall, I'm curious what the community actually does.
@Cody L. I didn't say YOU were a slumlord. I don't believe that. And I suspected before you wrote it that you pay security deposits back in a responsible fashion. But I still say not knowing the law or caring about it is cavalier. But most importantly I don't think it is good advice to give a new investor.
Regarding my last comment about slumlord vs professional - that is Hyperbole to make a point. It was not aimed at you specifically.
I stand by my post. I figured you could handle it.
I must admit when I read it, it seemed like a dig at CodyL. Also, slumlord is kind of strong wording, possibly "novice vs professional" would be a more appropriate comparison, especially, if the tenant gets the money back in a timely fashion, something I don't think would be as likely with a slumlord.
Rental Property Investor · Miami, FL · Member since 2018 · 110 posts · 113 votes
6y
Hey Matthieu,
I keep that money on my reserves account for that specific property. Since I put away money into that account monthly to cover any unexpected expenses by the end of the lease term there is a good amount and usually more than predicted. If something big comes up prior to lease ending I sometimes use that deposit money to cover the expense and then pay it back to the account within the next few months.
@Cody L. I didn't say YOU were a slumlord. I don't believe that. And I suspected before you wrote it that you pay security deposits back in a responsible fashion. But I still say not knowing the law or caring about it is cavalier. But most importantly I don't think it is good advice to give a new investor.
Regarding my last comment about slumlord vs professional - that is Hyperbole to make a point. It was not aimed at you specifically.
I stand by my post. I figured you could handle it.
All good man. I can handle it. Not much gets to me :-)
Raleigh, NC · Member since 2017 · 347 posts · 94 votes
6y
if it is truely a security deposit, you can't mix it with your personal funds (by state law usually). if its a non-refundable fee, do whatever you want
Hey all, I'm wondering what you all do when given a security deposit. Do you immediately put it in an escrow account or do you just keep it in your personal account? I've heard about landlords that pocket the deposit and then pay back their tenant when the lease is over- is this common? Overall, I'm curious what the community actually does.
Thanks!
What the community does isn't relevant. What's relevant is what's required by your State Laws or the laws of the state you're investing in. Every state is different.