Holding Tenant Deposit

[Mark Coleman]

Where is the best place to house the tenant's deposits? I was thinking of using an online savings account? 

[John Underwood]

What's wrong with a local bank?

[Mark Coleman]

Nothing just making sure I don't have to house it in a specialized way. 

[Kyle J.]

@Mark Coleman You’ll need to post where you’re from or where your rental is located to get an accurate answer to this question as different states have different laws regarding this. 

[Mike McCarthy]

@Mark Coleman you need to look at your state and local laws. There’s no federal rule about where to keep the deposits (other than somewhere safe). But many states require it in either an escrow account, or a specific type or account. Some states require you to include the bank name in the lease. Additionally, some states require you to pay the tenant interest in certain cases.

Know your state laws!!

[Nathan Gesner]

@Mark Coleman in the same bank used to collect rent. Check your state law because some require you to disclose where the money is held and may require you to pay interest to the tenant.