security deposit question

[Scott Goulet]

hey BP, just had a quick question; I have 2 properties now. 1 being a primary residence and 1 being a rental. I am super excited for the future and cant wait to get more into owner financing and buying some multi-family properties. I am in the South Florida market and I am also a realtor. my question is: I did collect a security deposit, and Florida tenant laws state the securitty deposit must be held in a "separate" account. what exactly is meant by separate? I mean I have bank of America and I have like 6 or 7 accounts. the security deposit is currently in it's own account along with last months rent. Is this situation ok? Do I need to put the money somewhere else? Any help is much appreciated. Thanks, Scott Goulet

[Marc Middleton]

Originally posted by @Scott Goulet:

my question is: I did collect a security deposit, and Florida tenant laws state the securitty deposit must be held in a "separate" account. what exactly is meant by separate? I mean I have bank of America and I have like 6 or 7 accounts. the security deposit is currently in it's own account along with last months rent.

Is this situation ok? Do I need to put the money somewhere else?

I'm surprised as an agent that you don't know that answer.

Yes, a separate account means somewhere it isn't 'co-mingled' with your personal funds. So if you use all 6-7 accounts during the course of the year, than that wouldn't be a good account for it. You are best to open a free savings account and put the last month and security in that account. Then you have to tell the tenant where the funds are being held. That will keep you out of trouble when it comes to a dispute later on should one arise. 

Do most landlords do that? of course not, this is Florida. A lot of landlords unfortunately don't even have the deposit when the lease is up and start making excuses why it can't be returned or why its delayed. 

Glad you are not one of those and are following the laws! :-)