Secruity deposit question

[vvillasana]

Am I in violation of my lease agreement if I did not put the security deposit into an escrow account but my own checking account? I am the Landlord.

 

[mightymoose]

No. So long as you do not spend the money and it accrues interest you should be fine. If your checking account does not accumulate interest then you might want to switch, although most banks pay next to nothing for interest anyway. If you have multiple properties it may be better to have a single account in which all deposits are placed. If you have a single rental it is more simple to manage in your own account.

 

[army judge]

Some states do require landlords to put tenant deposits into interest bearing accounts, and
not co-mingled with other funds. I suggest you speak with a lawyer, or Google "landlord deposit requirements YOUR STATE".


Sent from my iPad3 using Tapatalk HD

 

[mightymoose]

To be clear, there may be laws that control how you are to handle the deposit, but it would be a desperate issue in civil law that would not likely come about unless there was a problem with returning the deposit later.
The question was whether it is a violation of the lease agreement, and it is not- unless the lease specifically states so, but I have never seen one with that kind of language in it.

 

[disagreeable]

Different states have different regs. Some require it be put into a separate account. OH requires you pay the tenant 5% interest yearly. Here is MD law.
http://www.oag.state.md.us/Consumer/landlords.htm#deposits

SECURITY DEPOSITS
A security deposit is any money paid by a tenant to a landlord that protects the landlord against damage to the rented property, failure to pay rent, or expenses incurred due to a breach of the lease.

The security deposit may not be more than two months' rent. If you are overcharged, you have the right to recover up to three times the extra amount charged, plus reasonable attorney's fees.
You must receive a receipt for the security deposit. The receipt can be included in the written lease. There is a $25 penalty if the landlord fails to give you a receipt.
The receipt or lease should tell you of your right to receive from the landlord a written list of all existing damages in the rental property, if you make a written request for it within 15 days of taking occupancy. If a list of the existing damages is not provided, the landlord may be liable for three times the security deposit, less any damages or unpaid rent.
The landlord must put the security deposit in an escrow account. When returning security deposits of $50 or more, the landlord must include simple interest of 3 percent per year, accrued at six-month intervals from the date the security deposit was paid (1.5 percent every six-month period).