Tenant security deposit

[Heidi Vitela]

I just purchased my first investment property, a triplex in Baltimore county. I have inherited wonderful long term tenants. The seller mailed me their security deposits plus interest and now I am wondering: A) recommended place to deposit them? Savings? CD’s? Escrow account?

B) do you get a separate account for each tenant? 
Thank you all in advance!

[Russell Brazil]

Security deposit needs to be held in an interest bearing account with a branch located in the state of Maryland. It must be kept seperate from your own funds, but multiple Security deposits can be held in the same account. You are required to pay the tenant interest, and the amount varies. There is a calculator on the MD state landlord site. And yes, the interest rate is higher than you will get from a bank. You are the one responsible to pay the interest.