Deposit To Hold Question... Where do I deposit??

[James Morin]

Hi BP Family I hope everyone is out there safe and taking care of others the best they can! So I have potential tenants that passed all qualifications and seem to be great people. They want to move in middle of month and put a deposit down to hold. I am aware the Deposit to Hold will "transfer" into a Security Deposit but for the time being where should the money be held until they sign the lease?

[Michael King]

Originally posted by @James Morin:

@Michael King I have separate accounts for security deposits which by law I need to(not sure if every state is the same) But for Deposits to Hold you have a separate account for those as well?

I'm in Missouri and separate accounts are required (from memory). If I was doing it today, I would put the 'fee' or SD into the account with my other SDs. If the fee became an income, then I would transfer it to my income/expense account.