I am about to close on my first two family. I am trying to get all my documents in order. I have been warned to be careful regarding the security deposit. I know that it has to be in a separate bank account and I have gone to my local bank to ask about accounts. What else should I make sure to do?
are you buying with tenants in place or starting fresh after you close? I am going to go with starting fresh after you close. Besure to get social security numbers and exact names. Also you need to send them the interest at the one year anniversary or take it off the rent for that month. You need to tell them within 30 days what bank it is at and what the account number is. When they leave you have to send a letter under the pains and penalties of perjury within 30 days listing the damages, if any and how much you are keeping.
That's just some of the basics. Many landlords no longer bother with a security deposit and ANY violation is triple damages