Individual Landlord Bank account for security deposit
What are the requirements for holding tenant security deposits in NC? Do I have to open a separate account for holding security deposits?
Do you recommend small community banks for managing monies from rental properties? Or big banks Bank of America, Wellsfargo etc?
Any reading or material for guidance and learning ropes on this stuff.
@Kiran K. The NC state law requires all security deposits to be held in trust account. You should also follow the proper accounting rules for that (deposit slips, ledgers, consolidate account every month, etc). You also have to disclose to the tenants what happens with any interest earned on the account.
I don't think it really matters where you have that account as long as the bank is insured and located in NC.
Here is more info on security deposits:
Thanks @Jiri B. pdf is good. I'll set up an a/c. As per banks, do you recommend using small bank over big banks for long term, esp. if you need to leverage equity in property by taking loan, or other needs, fees, money accessibility usage etc.
@Kiran K. For loans, small banks or local credit unions / lenders for sure. For just regular checking account, i don't think that matters. I personally use larger bank for my business ACH accounts just because of the convenient locations and online banking and services. I'm fine having different account types with different lenders / banks.
I agree with @Jiri B. when it comes to loans, definitely go with the smaller banks and credit unions.