Profiting off security deposits

[Anthony Blasko]

So at the risk of sounding shady, I want to say up front that I have no interest in trying to pull one over on a tenant.

My questions is simply this. Is it legal to put a tenant's (or multiple tenants') security deposit into a savings account and then collect the interest that the deposit makes for you?

At first glance, I wouldn't think so, but maybe there is something when it comes to reporting that would have some pitfalls.

[Dan Barli]

@Anthony Blasko you should get familiar with the legal requirements in your state regarding security deposits. In NJ, you cannot collect the interest from your tenants’ security deposit.