Security Deposits and Bankrupt Property Manager

[Brent Wiebe]

This hasn't happened to me yet, but what if the property management company I hire went bankrupt and could not give the tenants in my rentals their security deposit back?  Would I have to come up with that money?

[Dawn Brenengen]

@Brent Wiebe In NC security deposits must be held in a separate trust account, so if the manager goes bankrupt, those monies shouldn't be affected (in theory).  However, the owner is ultimately responsible for the deposit, so if the PM steals it, the owner would still be liable to return it to the tenant.