Property Manager does not want to hold security deposit

2 Replies

State of Georgia

I have new property manager that does not want to hold security deposit because of accounting work.  

 I am a licensed agent and one of the reasons I use PM is to avoid involving my brokerage in security deposits rents...etc.  In Georgia, a licensee must place the deposit in a trust account through brokerage unless they are using outside management services.  

Partly my fault for assuming the new manager will hold the deposit (I didn't ask).   Common practice in Georgia is for PM to hold security deposit.  I like the PM as he seems honest and found a quality tenant very quickly on my new rental.  

The new PM  is also licensed broker.

Any suggestions?

If you want to stick with your property manager just set up the security account on your own. I'm not sure of your local law, but in NJ you'll just need your social and the tenants social, along with a w9 form. Just make sure you follow local security deposit regulations. 

In NJ we need to let the tenant know the physical address of the bank branch where the deposit is held, and send them the interest. Additionally, we have to hand deliver or send the deposit back via certified mail within 30 days of the end of tenancy, along with an itemized list of any deductions.

Again, not sure of the laws in Ga, but make sure you don't get hung out to dry because you missed out on one of these little loopholes.