disposition of tenant deposit

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
9mo

Just open a savings account for business purposes. 

We have separate savings accounts for each property so all of our payments, and expenses go through those accounts so nothing mixes with my personal $$$. 

If you own RE in an LLC it's extremely important. Co-mingling of funds is a no no.

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    9mo

    Just open a savings account for business purposes. 

    We have separate savings accounts for each property so all of our payments, and expenses go through those accounts so nothing mixes with my personal $$$. 

    If you own RE in an LLC it's extremely important. Co-mingling of funds is a no no.

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9mo

    Depends on your state because some you have to send them interest every year. For example in MA 5 % or whatever the account earns. 

    0Reply
  • Madelyn Felix
    Member since 2025 · 1 post · 0 votes
    9mo

    The best place is in a savings account by itself, or only with other security deposits.  The money cannot be used or borrowed and always belongs to the tenant until there would be charges against the security deposit.  

    The account should be in the same name as the landlord named on your lease agreement or property managers have their own trust accounts.  

    Make sure the security deposit is not sitting in an account that other expenses come out of. 


    0Reply
  • Kassidy BensonBusiness Member
    Professional · Denver, CO · Member since 2015 · 15 posts · 6 votes
    7mo

    I'm having trouble opening these special accounts in CO only a few banks offer them. My credit union doesn't offer them so I went to Chase. Chase had not idea what I was talking about and I directed them to their own website. It was a mess because they wanted a w9 for every tenant because it is an interest bearing account - I have five houses and 10 tenants. No way.

    I'm thinking about trying Baselane! It seems like the only software that also allows you to keep security deposits separate which is a feature I'm looking for! Plus bookkeeping for taxes. 

    0Reply
  • David PeschioBusiness Member
    Richmond, VA · Member since 2019 · 358 posts · 181 votes
    7mo

    Check with Enterprise Bank & Trust

    [email protected]804-909-1929
    PMI Richmond4.4308 Reviews
    WebsiteView Page
    0Reply
  • Ken Holifield
    Real Estate Broker · Fresno, CA · Member since 2008 · 76 posts · 30 votes
    6mo

    Florida has laws that tell you the answer to your question.  

    0Reply
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