Have You Stopped Taking Security Deposits?

“What keeps you up at night?” How often have you been asked that question? If feedback from some landlords is any indicator, then one of those things is probably accepting and ultimately, managing security deposits. Given that landlords in Massachusetts face triple damages for even minor infractions of the security deposit law, some have resigned themselves to believe that taking security deposits is a thing of the past. Well, maybe not anymore.

How would you feel if you knew that there are better ways to manage the security deposit conundrum other than acquiescing? What if there was an automated toolbox that you could access 24 hours a day, seven days a week from your desktop or laptop? Avidia Bank has such a solution.

According to Executive Director Doug Quattrochi, he believes that many landlords will want to know about Avidia Bank’s deposit escrow subaccount product (DESA). Avidia Bank is delighted to join MassLandlords.net as an advertiser and will be sharing our banking expertise with you over the next year.

Given the advancements in systems and technology, you can now access these tools that assist with control in financial management of your properties and tenants and all of it can be managed online. For example, Avidia Bank’s DESA product lets you create individual tenant savings accounts to simplify the process of taking security deposits. These accounts 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. These can be submitted electronically to open an account.

In addition, recordkeeping is simplified with 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.

It is commonplace that some landlords spend at least a half an hour at a bank each time they need to open or close a security deposit account. With DESA, when tenants move out, there is a simple process for returning a security deposit; 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.

When using Avidia’s DESA product, you maintain full legal compliance with much less effort and time, put the “security” back into security deposit and then perhaps, you can get some much needed sleep.

Sharon is the SVP of the Cash Management Group at Avidia Bank. She can be reached at 978.567.3532 or s.quinn@avidiabank.com.

By Sharon Quinn