8th April 2009

Handling Tenant Deposits

posted in Landlord/Tenant |

Today I had a conversation with a good friend who just rented a residential property she owns. She asked me a question about how I handle my tenant security deposits. Florida state law says that tenant security deposits must be kept in a separateĀ  non-interest bearing bank account in Florida. As in, you cannot “commingle” (mix) deposit money and business operating money in one account.

Handling Tenant DepositsApparently she had asked a long-time seasoned landlord the same question and he said that no one ever checks and he keeps his deposits in his operating account.

Early on in my (not so?) illustrious landlord career, I asked another long-time landlord the same question and she said that, yes the state law says that but she keeps her tenant deposits in an interest bearing account. Granted, the number of units she owns number in the hundreds so the interest earned on her deposits would be substantial. Mine? Not so much.

Regardless, I like to follow the law to the letter so that if I’m ever in front of a judge for any reason to do with landlord-tenant issues, the judge will have absolutely no choice BUT to find in my favor. Believe me, in my experience it’s worked like that before. To quote the judge, “Ma’am, if you want to stay there you MUST pay the rent. It’s the law.” And this was after asking me all these questions about the eviction procedure to see if I screwed up on my procedure.

There is currently one response to “Handling Tenant Deposits”

Why not let us know what you think by adding your own comment! Your opinion is as valid as anyone elses, so come on... let us know what you think.

  1. 1 On April 24th, 2009, George C. Torres said:

    Ahhhh, the eviction court. Any small time Landlord worth is salt needs to go thru the entire hassle just once to get an education on how the law protects the wayward tenant while waiting for the wheels of justice to turn (sometimes slowly); to observe the sea of low standards among humanity in the court room; to simultaneously be entertained and confounded at the futility of tenants’ excuses for not paying rent.
    Although my strict screening standards have helped me maintain income producing properties for the tenants I put in place, it’s not always smooth sailing once a dwellling has been purchased and having to deal with “inherited” tenants. At least that’s why still I go to court these days.
    I’m interested in hearing from others’ experiences at the eviction process.

  • Categories

  • Post Archive