Where do you keep your tenants security deposits?

[Michelle Hardy]

Hi Everyone,

Right now, I have my tenants' security deposits in separate savings account at an online bank.  Is this how most people do it?  If not, can you share where you keep the security deposits.  Thank you in advance for your input.

~ Michelle

[Tom S.]

@Michelle Hardy Just adding, check your local city too for their requirements, many have specific requirements that the state may not have.

Here in VT in the towns my properties are in, there is not a requirement to keep them separate or pay interest.  As such, I keep them in one account and just track any deductions with a spreadsheet for each tenant.  At the end of the lease term, it's a simple as printing that spreadsheet so it shows all itemized deductions from the security deposit.