Landlord Question and Answer Forum

Forum / General Property Management / Transferring Tenants Security Deposit to a new escrow acct.
We have a Property Management Co. currently collecting rent for a property we own. We want to dismiss them from their duties and they have told us that we are not "allowed" to transfer the tenants' security deposit from the Management Co.'s escrow account to a new escrow account handled by us, the LandLords. This will always keep the Manaagement Co. in the picture with our tenants. We would like to put the deposit in another escrow account for the tenant and be done with the Property Management Co. Any advice on this?
Patricia M Z, PA on Sunday, January 29, 2012
RE: Transferring Tenants Security Deposit to a new escrow acct.
Have tenant write a letter authorizing mgmt co to issue you a check in the amount held in escrow to include any interest earned. If that doesn't work, have tenant ask for the amount mentioned above. You should also write a letter to tenant and mgmt co with your intention.
Posted by Bob R, CA on Sunday, January 29, 2012
RE: Transferring Tenants Security Deposit to a new escrow acct.
I find it difficult to believe that you are not allowed to do it. You may have to inform the tenant of the new location of the account, but not allowed? Check with an attorney on it. It could well be worth a consultation fee.
Posted by Doug H, KY on Saturday, February 11, 2012
Documents related to this forum

Rent Receipt

Property Management Agreement (for Landlords)

Lease Renewal Agreement

Direct Deposit Billing Authorization

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