Separate bank acct for each security deposit, or one acct. for all security deposits?

[Bienes Raices]

The law in my state is vague. It says you must create a separate account for the security deposit, and you can't mingle it with your own money.

I was thinking of creating one bank account for the security accounts of all properties, rather than try to create a separate account for each deposit. Does anyone do this?

[Christian Malesic]

I had a further thought after posting the above:

In PA the law also speaks to interest, which is also pretty common throughout the states. PA allows the landlord to keep a small percentage (Something like the first 2%) and all other interest must be remitted to the tenant each year. Since most savings accounts are giving .25% to 1%, there is no need to remit any interest payment to tenants.

IMHO, the paperwork involved and the tracking (logistics) is more trouble than it is worth. For example, 2% of $550 sec dep is $11.00 a year minus hard expenses (like stamps, envelopes, ink) minus time. It is a very unprofitable task.

I actually prefer the lower interest rate scenario (not determined by us, but by the market) so that the whole side of legal compliance is negated.