It could have been transferred but you would really want a paper trail that states that, if they can't come up with a good explanation this would be a huge red flag.
Originally posted by @Mark S. :
My property management company is a large, reputable turnkey company. I’m getting ready to purchase another property with them. I was going through my two existing leases with my two existing properties with them. I noticed that they collected a security deposit on one tenant and not the other. The tenant they didn’t collect a security deposit on was an existing tenant that moved to another one of their homes (mine) under management.
I am planning to inquire to the property management company as to why there was no security deposit collected for this tenant. Are they able to collect one now after the lease is already signed (1-year lease), or do they need to wait until lease renewal? If they collected one for the previous home the tenant rented from them, assuming it wasn’t used up on the other property, is it reasonable to ask that it be transferred to my current propert that the tenant is actively occupying?
That is a no gooder. What they should do is treat all tenant's moving to new properties within their portfolio as any other arms length tenant. A new application fee and background check would be overkill of course, but they should be collecting a brand new deposit and treating the old deposit as a completely separate issue. The owner of that property is not the owner of your property and the deposit's should be treated as such.