Security Deposits: Escrow or Landlord/Tenant Account

[Dinesh T.]

Connecticut law states that the security deposit MUST be held in an escrow account. When I went to the bank today, they advised me to open a Landlord Tenant account which I believe is not an escrow account. Can someone advise me if both are the same? What do you do in your business?

-Dinesh.

[Account Closed]

You will setup another bank account called a "Tenant's Security Deposit Trust Fund Escrow Account" at the bank.  You must keep the tenants Security Deposits separate from your own bank account.  (Check your state law)

When you deposit the Security Deposit into the Security Deposit Trust Fund Escrow Account at the bank you will make the Security Deposit in QuickBooks, if you use QuickBooks, a Security Deposit Other Current Liability Account. 

Nancy Neville