How do I Handel a deposit for a (very)short-term tenant

[Anthony Greene]

I just purchased my first multi family on 9/12 which came with a tenant who will be moving out on 10/1. I was cut a check for the tenants deposit. I know that by law I am required to put the money in an interest barring account but considering my tenant is moving out in 10 days, is this still required?

[Marcia Maynard]

Yes. You should put the check in an interest bearing account if that is what the law in your jurisdiction requires. You do not know at this point how much of the tenant's security deposit you will return until you have possession of the unit and have have done your final inspection. The security deposit that was transferred to you upon purchase of the property is still for you to use for unpaid utility bills, damages, etc. Hopefully upon transfer of the property you also obtained the tenant's original move-in check list.  You will have a certain number of days after the tenant moves out to calculate the final report for return of the security deposit. Use the time well.  Don't let the tenant pressure you into giving them back their deposit at the time they move out.