Security deposits are used to motivate tenants to take care of your property and are used to recoup damage they cause, ensure rents will be paid, and other responsibilities of the lease are performed. But there are state laws governing the use and protection of these funds and if not handled correctly, you could lose your right to keep any portion of the deposit and could even end up owing your tenant!
HOW WE HANDLE SECURITY DEPOSITS:
We maintain a trust account with a local bank. Since deposits are legally the tenant’s, we keep these funds separate and account for them monthly as required by Georgia law. For the properties that we manage, we require our owners to allow us to hold and manage these deposits, protecting the owner from any potential liability.