Holding Securtity Deposits
I have a new property in Louisiana and have a tenant moving into the property..I have charged a security deposit. What type of account is normally used to keep security deposit..should I set up an Escrow account and if so when I purchase my next property do I have to open a seperate Escrow account for each property or can I just hold one and store all securities from the properties in the one account.
thank you
There 2 ways to do it by each property or by each tenant. Interest accumulated in an account that has several tenants I find it hard to calculate the interest especially if it is over a long period. The simple way for me is to have each one individually . I hope this is of help to you.
Better check with the LA folk. States frequently dictate how you handle escrow accounts. In VA, we must pay interest after a certain # of months on deposit and the Commonwealth sets the % rate.
Jim
Well, I think it depends upon what the contract says. Is there a paragraph on early termination?
Did you have an attorney review the contract before you engaged the management company? If so, I would seek their advice. If not, find an attorney to review the case and advise you from there...
[addsig]