By Sharon Quinn
Managing just a few units can be challenging but when the number of units under management starts flirting with 30, 40, 50 or more it greatly complicates the many and sundry aspects of being a landlord.
With so many moving parts, some have resigned themselves to believe that something as important as taking security deposits is more hassle than it's worth. This is understandable due to recent legal matters that involved the non-payment of interest from a security deposit and the substantial repercussions to the landlord.
The good news is that there are financial management platforms that, among other benefits, allow for a scheduled (“set it and forget it”) interest payment on the month end of the anniversary date of each unit. This service can be set up when bringing on new tenant and discontinued for those who are leaving the property.
When tenants move out, there is a simple process for returning a security deposit…just use online banking to transfer the balance in the tenant account to your master checking account and write the tenant a check. Finally, at the end of each year, this service handles all tax reporting for you.
Every property can be managed from one master checking account in the name of the landlord. To make the account set up process easier, the only required documentation is a W-9 signed by the tenant and the tenant’s date of birth.
In addition, recordkeeping is simplified with quarterly statements that are sent to both landlord and tenants (statements are monthly when there is account activity, otherwise quarterly).
Other benefits include the accrual and tracking of interest by individual tenant account, ability to view master and tenant accounts online and the ability to group tenants by property/building.
Please contact me to learn more about Avidia's security deposit solution!
Sharon is the SVP of the Cash Management Group at Avidia Bank. She can be reached at 978.567.3532 or firstname.lastname@example.org.