If I’m a landlord of a property but living out of state and need to escrow a security deposit, where do I do it?
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If I’m a landlord of a property but living out of state and need to escrow a security deposit, where do I do it?
Do I need to escrow it where the property is located or can I escrow it in my home state? If I need to do it where the property is, can I ask a friend living there to open a security deposit/escrow account for the tenant in their name? Can you advise the best course of action?
Asked on September 4, 2012 under Real Estate Law, Massachusetts
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
From a practical matter since the rental is located in a state different than where you reside, I suggest that the escrow account for the tenant's security deposit be opened in your name and not a friend's on behalf of the tenant in a financial institution in the town/city where the rental that the security deposit is for is located.
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