Rental property deposit

[Yogesh Bhadane]

Is it customary to have the property management company to keep the rental property deposit and earn interest on it?

[Tracy Streich]

@Yogesh Bhadane

We manage over 500 homes and keep all the deposits as the management company. As Steve noted it is the tenants money and we are just holding it for them. State laws differ on the interest but we don’t even factor it in our budget it is so small. As an owner I would not even worry about the interest. 1/4% on a Few hundred or even few thousand is not worth the effort