Im interested in purchasing a rental property in 2020 in Pennsylvania and I was wondering if there was a way around paying interest on the deposit for tennants who stay longer then 24 months. I was thinking rather then charge a security deposite, could I charge a one time maintenance fee equal to the rent? This money would be invested to cover the cost of tennant damages when they arise.
They're only due interest if you put it in an interest bearing account ... additionally, you are allowed to charge a reasonable account servicing fee (not to exceed the amount of interest generated by the account). This was only an inconvenience in a high interest rate environment. If this is what is stopping you from being a landlord, it shouldn't.
Thank you for that info.