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Delicatehand…, Real Estate Pro in Dallas, TX

IF you own a 2 family home do you have to put tenant deposit in interest bearing account?

Asked by Delicatehandsv, Dallas, TX Mon Aug 17, 2009

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T.E. Sumner’s answer
Bruce has a good answer. In several states I know of, interest-bearing accounts are required. The lease agreement can stipulate that the owner gets the interest, but the money must be set aside.

Not so in Texas (you can consult an attorney to understand more fully) the security deposit is held by the owner or a management company. Nothing requires it to be a trust account. Nothing requires it to be interest-bearing. The law does require it to be accounted for and the proper amount refunded to the tenant within 30 days of termination.

You can read the Texas Property Code on line, if you like. Much of what applies to you is in section 92.

So, unless your lease agreement says it must be held in a trust account or an interest-bearing account, you're free to hold it any way you like. Just account for properly when the lease terminates and refund what is due. You might want to read up on "normal wear and tear" and where to send the refund, too.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Fri Aug 28, 2009
No you don't however I advice any property owner we represent set that money aside when tenant moves out you need comply with lease agreement.

I represent property owners on lease and own investment properties, love leasing markets represent tenants.

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0 votes Thank Flag Link Wed Aug 19, 2009
No, But you Property managers in Texas should be more careful. Many Realtors are practicing and property management that can get in a real fix. I just don't think it is worth my lic.
Delicatehand.... you as the owner do not have to have a Trust account.

Margaret
0 votes Thank Flag Link Tue Aug 18, 2009
Not in Texas.
This is common other places like CA.

If you need help getting your places rented, please call on me.

Bruce Lynn
Keller Williams Realty
214-675-6992
http://www.teamlynn.com
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Mon Aug 17, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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