Separate Security Deposit Accounts - Indiana
Do I need to have a separate bank account for my tenants Security Deposits in the state of Indiana? If not, is there any benefit to me forming one?
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Hey Josh - Quick search on google brought me to this article (1.5 years old) for you where they say no separate deposit acct is necessary. https://www.landlordology.com/indiana-landlord-tenant-laws/
That said, you can probably get a quick answer by calling the Housing Authority in Indiana.
While I am not an investor in Indiana, I am an investor in Maine. In Maine we do have to have a separate count for deposits. This actually get checked in the state of Maine from time to time. I've stopped taking security deposits and started taking first and last months rent instead. This gives me some breathing room if somebody does not paytheir rent and I have to go through the 45 -60 day process in Maine for notice and eviction. All states are going to be different and some of your strategy will need to be tailored to the specific state you are operating.
Best - Dave