How much are you depositing for income in the bank?

Also, you should have in your agreement that fees become part of rent, which in many areas will allow you to ultimately charge them the fees in court instead of taking fees from the security deposit.

However, your initial payment and security deposit may take some time before it hits your bank account.

Business and friendship often don’t mix for many reasons—for instance, it can be very difficult to enforce lease terms (like late payment fees or deposit retentions) with a friend… and if you do enforce those lease terms, it can easily destroy the friendship.

They’re both on the lease.Do I return the security deposit and have the sister come up with the full deposit and put together a new lease m2m?

I have been told to deposit it, take my part for labor and the rest of the check will go to their supplier.

Bank deposits provide prima facie evidence of income.

Somehow the property manager faked the deposits because the rent was late to the point of maybe 5 days before the next month every month both sides. 3 weeks after closing one of the tenants became my boss at work which was super awkward because then I couldn’t file late notices for rent to either side because they were related for fear of retaliation.

Let them sort out the deposit themselves.

And thank you... we try and do the best due diligence we can, especially when we waive all contingencies and our deposit is on the line!