Security Deposits, what banking institutions?

Question

Greetings family. I would like to know which banking institutions and type of accounts you are using for security deposits that comply with Florida law.
I have heard to use an escrow account. However, I called Chase bank and asked about opening an escrow account and they said I would have to have some kind of agreement. Maybe I didnt express well that it was meant for landlord.

Thanks.

Michelle Welter · Answer

FL - a unique accout it required for each property -- sounds like it an get complex

Michelle Welter · Answer

Its a question not a statement.  Couldnt see how to edit

Stephen Dispensa · Answer

You need to open a separate checking account. If you are in the state of Florida, this can be an interest-bearing or a non-interest bearing account, HOWEVER your tenants must be informed at lease signed the name and address of the bank where the security deposit is to be stored. You must also inform them whether it is an interest bearing or a non-interest bearing account. Lastly, you must inform them who is to receive the interest if it is in an interest bearing account.

Drew Sygit · Answer

We use Chase

Jeremy Kloter · Answer

Yes, we have a few different accounts 1. operating expenses for the business 2. one account where all rents and cash reserves for maintenance are held 3. security deposits 4. company taxes 5. company savings 6. company salaries, etc..

Jeremy Kloter · Answer

We do use Chase Bank for our property management company, we do NOT collect interest on the funds.

Luis De Jesus · Answer

Thanks for the feedback.  Sounds like any non interest bearing account would do as long as its a separate account for the security deposits.  Good stuff.

Nathan Gesner · Answer

The link provided by Bjorn should tell you what you need to know. I recommend you buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.

You can store the deposit in an interest-bearing account or in a non-interest-bearing account. I recommend the latter. If you gain interest on the deposit, then you must pay that interest out to the tenant each year which adds to complexity and workload.

Any bank should work. Explain to them that you need a checking and savings account and that it will be used for a rental property that is privately owned.

Eliott Elias · Answer

Security deposits must be kept in a separate, interest-bearing account, separate from the property manager's operating funds.

Bjorn Ahlblad · Answer

https://www.nolo.com/legal-enc...everything you need to know. All the best.