 How is your SD held? (by BET [MA]) Jul 26, 2012 8:11 AM
 How is your SD held? (by Kyle [IN]) Jul 26, 2012 8:18 AM
How is your SD held? (by gevans [SC]) Jul 26, 2012 10:14 AM
How is your SD held? (by Dan [MA]) Jul 26, 2012 10:15 AM
How is your SD held? (by Nicole [PA]) Jul 26, 2012 10:25 AM
How is your SD held? (by Rangor [TN]) Jul 26, 2012 10:40 AM
How is your SD held? (by Mike45 [NV]) Jul 26, 2012 11:23 AM
How is your SD held? (by TenantWhisperer [MA]) Jul 26, 2012 11:54 AM
How is your SD held? (by BET [MA]) Jul 26, 2012 12:02 PM
How is your SD held? (by TenantWhisperer [MA]) Jul 26, 2012 1:56 PM
How is your SD held? (by TenantWhisperer [MA]) Jul 26, 2012 1:56 PM
How is your SD held? (by BRAD 20,000 [IN]) Jul 26, 2012 7:17 PM
How is your SD held? (by BET [MA]) Posted on: Jul 26, 2012 8:11 AM
Message:
State Specific Question About: MASSACHUSETTS (MA)
Just posted that DOA took my/tenant security deposit from the bank account. I open separate escrow accounts for each new tenant in an account that lists me as the owner of the account, but the tenant is named also but they can not touch the account.
MA laws states that the account can not belong to me and has to be protected from my creditors. How do you step up your accounts and how can I prevent this from happening again?
--108.49.xxx.xxx |
How is your SD held? (by Kyle [IN]) Posted on: Jul 26, 2012 8:18 AM
Message:
Maybe an escrow account with a law office or title company would work? --71.194.xxx.xxx |
How is your SD held? (by gevans [SC]) Posted on: Jul 26, 2012 10:14 AM
Message:
No such requirements here... I hold SDs in a simple savings account, separate from my business account. --141.129.x.xx |
How is your SD held? (by Dan [MA]) Posted on: Jul 26, 2012 10:15 AM
Message:
I don't know if I was 100% in compliance with crazy MA laws or not, but at one time I had a ton of SD's and wanted to get away from separate accounts. I went to the bank and opened an escrow account (just like a lawyer or realtor would have). Then I put them all into that one account and I just tracked separately how much belonged to each person. When the account earned interest, I had a spreadsheet to figure out how much each tenant got of that based on the % of the total that each had in the account. I don't do SD's any more. --74.8.xx.x |
How is your SD held? (by Nicole [PA]) Posted on: Jul 26, 2012 10:25 AM
Message:
I take thier deposit and buy a 12 month CD at whatever the going rate is. --72.95.xx.xxx |
How is your SD held? (by Rangor [TN]) Posted on: Jul 26, 2012 10:40 AM
Message:
Same as Gevans. --173.161.xx.xx |
How is your SD held? (by Mike45 [NV]) Posted on: Jul 26, 2012 11:23 AM
Message:
No such requirement here. Dan's method seems like a heck of a lot of work. But I know that MA imposes some very onerous laws.
Lawyers are smarter than Dan -- many (most?? all??) states have enacted IOLTA laws. All of the interest earned on standard attorney client trust accounts is paid to that State's Bar Foundation, which funds Legal Aid and Poverty Law Group and other "deserving" legal providers. This "theft" of the interest on attorney-client trust accounts means that the attorneys don't have to allocate the interest among the clients who have money in the trust account. Thank God!
And I also thank Him for the fact that I don't have to pay interest on SDs or maintain separate accounts. I have one accoount that I put all of my SDs into, and that I pay all of my SD refunds out of. No silly MA laws here!
--67.233.xxx.xxx |
How is your SD held? (by TenantWhisperer [MA]) Posted on: Jul 26, 2012 11:54 AM
Message:
Sovereign bank will set up a Master Escrow Account for you with a subaccount for each tenant.
That's what we use. --24.60.xx.xxx |
How is your SD held? (by BET [MA]) Posted on: Jul 26, 2012 12:02 PM
Message:
TenantWhisperer, do you need the tenant SOC? --108.49.xxx.xxx |
How is your SD held? (by TenantWhisperer [MA]) Posted on: Jul 26, 2012 1:56 PM
Message:
Bet, you need the tenant's SS#, his DOB, and a photo of his/her driver's license (or some other state-approved photo ID). You'll also need the address of his new apartment.
I usually take a smartphone photo of their license, blow it up and print it out.
Sovereign will, at years end, send the tenant the interest earned on the account as well as report that interest to the IRS.
--24.60.xx.xxx |
How is your SD held? (by TenantWhisperer [MA]) Posted on: Jul 26, 2012 1:56 PM
Message:
Bet, you need the tenant's SS#, his DOB, and a photo of his/her driver's license (or some other state-approved photo ID). You'll also need the address of his new apartment.
I usually take a smartphone photo of their license, blow it up and print it out.
Sovereign will, at years end, send the tenant the interest earned on the account as well as report that interest to the IRS.
--24.60.xx.xxx |
How is your SD held? (by BRAD 20,000 [IN]) Posted on: Jul 26, 2012 7:17 PM
Message:
No law here about holding it.
We just drop it into our checking account and keep moving.
BUT...another reason to not use SDs. We make the SD a Non-Refudnable Option Fee so there is nothing to return nor any deposit settlement letter to send.
Are you certain it must have THEIR name on the account? I'd want to see that in writing.
How about account #1, #2, #3 rather than their personal names? Does the law read "interest bearing account"? What if you simply paid x% interest on each?
Your recent post about it being snatched would be motivation enough to see the actual requirement in print and I'd be scrambling to find another system. Such as first and last month to take possession.
I must comment that I did a 5 year study and found we only paid back 1 out of every 20 SDs. Most were used to cover unpaid rent and damages.
--50.129.xxx.xxx |
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