 trust account (by 6x6 [TN]) Dec 11, 2018 3:31 PM
 trust account (by Robert J [CA]) Dec 11, 2018 6:05 PM
trust account (by Johnny B. [MA]) Dec 11, 2018 6:19 PM
trust account (by Still Learning [NH]) Dec 11, 2018 6:27 PM
trust account (by Steve [TN]) Dec 12, 2018 5:07 AM
trust account (by razorback_tim [AR]) Dec 12, 2018 5:21 AM
trust account (by S i d [MO]) Dec 12, 2018 5:34 AM
trust account (by 6x6 [TN]) Dec 12, 2018 2:48 PM
trust account (by AllyM [NJ]) Dec 12, 2018 4:45 PM
trust account (by 6x6 [TN]) Dec 12, 2018 5:28 PM
trust account (by Steve [TN]) Dec 13, 2018 5:10 AM
trust account (by 6x6 [TN]) Dec 13, 2018 2:05 PM
trust account (by 6x6 [TN]) Posted on: Dec 11, 2018 3:31 PM
Message:
On the trust account that you set up for security deposit should it be a checking account so you can write checks for any sd returns?
--73.120.xx.xxx |
trust account (by Robert J [CA]) Posted on: Dec 11, 2018 6:05 PM
Message:
You shouldn't park the funds in an account that your tenant has access or the account number. If they file a phony claim in small claims court and then have someone lie that you were served, there will be a default judgement against you and they can collect against said account.
--47.156.xx.xx |
trust account (by Johnny B. [MA]) Posted on: Dec 11, 2018 6:19 PM
Message:
You need to check your state laws on this. In Mass it has to be an interest bearing account that is beyond the reach of the landlords creditors. Also the account info and number needs to be shared with the tenant. Different states have different rules. --24.147.xx.xxx |
trust account (by Still Learning [NH]) Posted on: Dec 11, 2018 6:27 PM
Message:
State laws vary. I use a savings account and transfer the amount into checking and then write a check to the tenants for that same amount the same day as the transfer. There is a clear in and out since funds should not be commingled with your operating account. --24.61.xxx.xx |
trust account (by Steve [TN]) Posted on: Dec 12, 2018 5:07 AM
Message:
You don't have to do anything in particular in TN. You don't even have to keep the money in an account. Spend it on beer if you want. But, when the tenant leave, you better be able to come up with the money to return whatever portion of the deposit is owed.
I recommend that you just put it in a dedicated savings account and collect whatever meager interest that will bring. If you have multiple tenants, there is no requirement to keep each tenant's money in separate account. --68.156.xx.xx |
trust account (by razorback_tim [AR]) Posted on: Dec 12, 2018 5:21 AM
Message:
I do as Still Learning does. My attorney said that works here. --166.137.xxx.xx |
trust account (by S i d [MO]) Posted on: Dec 12, 2018 5:34 AM
Message:
As others have said, state law governs and varies. Robert J knows what works in CA. Your state laws may be more or (probably) less restrictive. Call or email your local, experienced, LL/tenant attorney and get the correct answer.
My attorney advised me that a separate checking account with the verbiage, "ABC Rentals Tenant Security Deposits" was sufficient, as long as nothing but security deposits go in and out. I have a separate set of checks too. Very easy to maintain and track. If I were a Real Estate Broker managing property for someone else for pay, I believe I have to have a formal escrow account....but not 100% sure. Just mentioning that so you can see that not only do state laws vary, but depending on who you are the law varies. --173.20.xxx.xxx |
trust account (by 6x6 [TN]) Posted on: Dec 12, 2018 2:48 PM
Message:
Thank you all for your response. Still Learning,are you putting into your personal checking account and then writing a check or a checking account just for that purpose? Steve,thank you for the TN information. I thought in TN you had to put it in a different account. I have to read through all of the laws anyway for other things as well. I was trying to figure out if it had to be in a different account how to return there funds if any. --73.120.xx.xxx |
trust account (by AllyM [NJ]) Posted on: Dec 12, 2018 4:45 PM
Message:
At my bank, BofA, it is a rent security account and I am the custodian. The word trust is never mentioned. I have received checks with them. --73.248.xxx.xxx |
trust account (by 6x6 [TN]) Posted on: Dec 12, 2018 5:28 PM
Message:
Thank you AllyM,I am probably using the wrong word. --73.120.xx.xxx |
trust account (by Steve [TN]) Posted on: Dec 13, 2018 5:10 AM
Message:
6x6. Don't make it too complicated. Just open a savings account for security deposits. You only need one, regardless of how many tenants you have. When a tenant vacates, if any moneys are owed, simply transfer money from that account to your checking account and write a check.
If the deposit return is less than the deposit amount, transfer that amount to wherever you need it to be to pay yourself back for the repairs, damage, whatever. Just keep track of everything somewhere. A written ledger, note, spreadsheet, etc. --68.156.xx.xx |
trust account (by 6x6 [TN]) Posted on: Dec 13, 2018 2:05 PM
Message:
Thank you Steve. --73.120.xx.xxx |
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