Bank Account for Security Deposits

[Kyle Lecy]

Hello, 

I will recently be purchasing a rental property, and was told that in the state of Minnesota that the security deposits legally need to be put into a separate trust account. However, I can't find any Minnesota state statutes saying this. 

If anyone would be able to give me any insight into this, or the correct way to hold security deposits, that would be greatly appreciated!

Thanks.

[Tim Swierczek]

@Kyle Lecy, unfortunately, most of the people who replied DO NOT live or rent in MN.  @Joseph Hammel is 100% correct.  The only thing I would add is that the 1% simple interest works out to $10/year on a $1000 deposit so make sure you pay it even if the tenants don't care.   Sounds like you are new to investing and Landlording.  There is a free landlord 101 class next week. @Ryan Luthi is hosting it.