Prepaid rent escrow (by Bill C. [VA]) May 2, 2015 9:47 PM
Prepaid rent escrow (by Bohemia [IL]) May 3, 2015 3:36 AM
Prepaid rent escrow (by Vee [OH]) May 3, 2015 4:45 AM
Prepaid rent escrow (by Tamara [VA]) May 5, 2015 6:14 AM
Prepaid rent escrow (by Bill C. [VA]) Posted on: May 2, 2015 9:47 PM Message:
State Specific Question About: VIRGINIA (VA)
Does anyone have any experience on setting up an escrow account for a Tenant's prepaid rent as required by the Code of VA? I was wondering how to go about setting this up.I've not done this before and am just starting to research it. I know I have to place the funds in a Federally Insured Depository and can only withdraw each months rent amount when it comes due, etc., but not sure of how to go about it.
I have a business checking account for that LLC / rental property, but I'm pretty sure I can not put it all in there. I'll be consulting an Attorney but wanted to see how other VA L/L have delt with the issue.
Thanks in advance for any info you may have to offer.
Bill C. --72.218.xxx.xxx |
Prepaid rent escrow (by Bohemia [IL]) Posted on: May 3, 2015 3:36 AM Message:
I've done an escrow account for my business, not rent, but the concept should be the same. I talked to my bank and their wealth management department could set up such an account. Not all banks can do this, so you may need to shop around.
The account had both our names on it, and we had a signed contract that talked about how the proceeds would be distributed. We had to think through the "what-ifs" that might go wrong and provide for different disbursements (e.g., one of us breached). VA law should provide a template for these things. --24.217.xx.xx |
Prepaid rent escrow (by Vee [OH]) Posted on: May 3, 2015 4:45 AM Message:
I do this often for student rentals, never mix anything, send a receipt monthly showing account status - this will be deduction for rent payment to Vee xxxx and damages to Vee xxxx property, when account is down to 2 month rent value - please recharge your account. --75.94.xxx.xxx |
Prepaid rent escrow (by Tamara [VA]) Posted on: May 5, 2015 6:14 AM Message:
I have heard people on here mention just setting a rent for the year (rather than a monthly rent) to avoid having to do this account. For instance, instead of having $1000 a month as the rent indicated in the lease, say that is is $12,000 a year in the lease. I have never done this, so cannot vouch for its legality. --152.119.xxx.xxx |
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