 security deposit account? (by Terry [NJ]) May 3, 2010 7:52 AM
 security deposit account? (by Amy [AK]) May 3, 2010 10:09 AM
security deposit account? (by Nancy [NJ]) May 3, 2010 10:33 AM
security deposit account? (by Terry [NJ]) May 4, 2010 8:18 AM
security deposit account? (by Terry [NJ]) Posted on: May 3, 2010 7:52 AM
Message:
Hi all,
I am a new landlord. Our new tenants just wrote us security deposit checks made out to our new LLC. I know we need to make a separate savings account for their deposit. Our LLC is called Terry House, LLC. They wrote the checks to that. In the future they will write rent checks to that.
My question:
Should I just open a separate savings account with a name like Terry House Security Deposit or something? Or can I just deposit their security in my Terry House, LLC account with all the rent checks and later on do the math for their savings interest. Basically, does separate really mean a whole new separate savings account JUST for their deposit.
Sorry for the superlong question. I just want to stay legal and get it right. Thanks all! --173.70.xxx.xxx |
security deposit account? (by Amy [AK]) Posted on: May 3, 2010 10:09 AM
Message:
In Alaska, this is defined in our Landlord Tenant statutes. We are required by state statute to have a seperate account for our deposits, inform the tenant of the bank that the accout is established at, and disclose whether or not the tenant will recieve any interest earned on the accout when they move. So, I would say, check your statutes and see what they say in terms of the security deposit. --158.145.xxx.xx |
security deposit account? (by Nancy [NJ]) Posted on: May 3, 2010 10:33 AM
Message:
Terry - you need W-9 form filled out by tenant(s) take to bank with check - tell them you want to open Tenant/Landlord Rental Security account- they will know exactly what you need ...
the below should help you as well ...
Residential Security Deposit
New Jersey law prohibits a landlord from requiring more than 1½ times the monthly rent as security. Security deposits are generally required to pay for the repair of damage to the leased premises that is more than the cost of normal maintenance and repair and may be applied to unpaid rent.
Security deposits must be deposited by the landlord into an interest bearing account within 30 days of receipt. The landlord must notify the tenant in writing of the name and address of the depository bank, the amount deposited, the type of account and the current rate of interest for that account, and annually thereafter. If the landlord fails to provide this information to the tenant in writing within 30 days of: (1) the receipt of the security deposit, (2) moving the deposit to another account or bank, (3) the merger of the bank with another bank, (4) the sale of the property or at the time of each annual interest payment, the tenant may apply the security deposit and any accrued interest toward rent. Tenants must notify the landlord in writing by certified mail if they are doing so. If the tenant is going to apply the security deposit to rent because the landlord failed to pay the annual interest in cash to the tenant or failed to provide the tenant with the annual update of the account information, the landlord has 30 days to rectify these failures.
If the property is sold prior to the termination of the tenancy, the landlord is required to transfer the security deposit to the new owner(s) and notify the tenant in writing. The new owner has a duty to obtain the security deposit from the selling landlord. --70.21.xxx.xxx |
security deposit account? (by Terry [NJ]) Posted on: May 4, 2010 8:18 AM
Message:
Thanks Nancy. I knew about the deposit limit here but not the W9. I talked to some LLs. But they all do random things. That's why I came here to Mr. Landlord... So every tenant has to fill out W9s? --173.70.xxx.xxx |
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