Best way to receive a security deposit?

[Justin White]

Hello,

I'm having trouble figuring out how to receive a security deposit. I am required to hold it in an escrow account and inform the tenant of the location. I use chase bank and TurboTenant software to manage the rental. Turbo Tenant can only deposit into checking accounts. I'm not sure if the deposit can be held in an account with only my name on it. I'm also not sure if the deposit can first be transferred into a personal checking account and then into a savings account. Anyone use Turbo Tenant that can help with this? Thanks.

[Mitch Messer]

Hi @Justin White! Two quick thoughts:

1. If this is your first rental, and you own it as yourself (not an LLC) you are not required to keep the security deposit in an escrow account (see O.C.G.A. § 44-7-36).
2. I would strongly urge you to think long and hard about whether you really want to manage this property yourself. Knowing the landlord-tenant laws of Georgia is just a small part what an experienced property manager brings to your operation. As a landlord, the penalty for your ignorance can be high, harsh, and potentially real estate career-ending!

Good luck!