Real Estate Professional · San Francisco-East bay, CA · Member since 2013 · 340 posts · 50 votes
Hi,
Anybody has any recommendation of any financial institution accounts that are non-interest bearing deposits, to hold the tenants deposit amounts? The few institutions I reached out does not have what I need.
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
11y
First some comments:
It's not that much of a nightmare to figure out the interest return to the tenant, particularly in these days of such low interest returns. My tenant deposit account currently earns 16 cents per month - that's with 3 tenants in it. Shouldn't be too difficult to separate it out. It's just math. And since their interest return will be less than $10, there's no need to do a 1099-INT to them.
But for those determined not to earn interest, just stick it in a no-fee checking account.