When looking to rent an apartment what does +escrow mean?

Question

I am looking to rent an apartment in a city that I have never lived in before and I noticed many of the ads say Rent +utilities +escrow. What is escrow when you are renting?

Answer 1

Security deposit

Answer 2

It does not look right. Why would anybody want to collect a security deposit on a monthly basis (Rent+utilities+ESCROW)? Usually the deposit is collected only once when the lease commenses. They use the deposit in case there is a damage in the apartment at the end of the lease. Call the management company and find out. Escrow should be a one-time deposit, which sould be held until the end of your lease.

Answer 3

Escrow typically means - money that is set aside. When you purchase a house, you escrow enough money to pay the taxes for 1 year and home owners insurance for 1 year.

Depending on what's typical for your area, escrow could mean that they are holding money in case of damage when you move out.

Answer 4

It is the security deposit.

Any account holding money on behalf of 2 parties would be acting as an escrow. the release of the money would be based on the terms of the contract the 2 parties sign theie acceptance to.

Here is some additional info. Hope this helps.

Answer 5

i would guess that they are using the word escrow instead of deposit but i have never heard it used for rental property. technically deposits have to be put in escrow and cannot be mixed with the income made from the property because a deposit has to be kept safe from monetary loss of the owner.

Answer 6

Got me unless it is in regard to the security deposit or the utilities are paid by the landlord and you have to reimburse him/her for them

Answer 7

An additional sum they will set aside in case you do damage that you don't pay for. You get it back when you leave if there is no damage.