Security Deposit

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Got a possible tenant that wants to pay Security Deposit to hold rental property and will move in on the 1st of Feb & will have the 1st month rent.

Any suggestions on how to complete this transaction smoothly, any specialist forms, etc... Open to any advice. Check a few references on this possible tenant and everything looks okay.

Comments(3)

  • pstabile27th January, 2008

    I think state laws vary with regard to this. This happened to me once and I returned it her deposit after she changed her mind, since she implied it would cause her a great deal of financial hardship, but I am pretty sure here in NC the state laws allow me to keep the deposit.

    Pat

  • dirtman8926th January, 2008

    What I do is transfer my props into a realty trust and then make an LLC the beneficiary. This does not visably trigger anything and the scedule of beneficiaries is not recorded so it is easy for you to change as the trustee. I would not hold a long-term hold that I need to get financing on directly in a corp or LLC, but would through a trust.

  • cjmazur27th January, 2008

    Dirtman, how does that lessen the the risk of DOS being called?

    Land trust is still a transfer.

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