Can I just deposit the rent in my checking account or do I need it to clear through the escrow account I set up? This property is in Massachusetts.
2007-10-11 02:16:00 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
what james said
2007-10-11 02:25:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can stuff your mattress with it if you wish. The tax man would probably like to see you put it in your bank account so that there is an audit trail but as long as you keep accurate records you'll be OK regardless of where you put the rent monies.
As a matter of best practice, I always kept my funds for my properties in a separate account. The mortgages were paid from that account, as were repairs and other costs. It just made it easier for me to keep track of things that way but it's not a legal requirement.
Security deposits may be another matter entirely. Some states or local jurisdictions require you to hold security deposits in a separate account and not comingle them with your other funds.
2007-10-11 02:27:47 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
If you have a separate business account for all rents, deposit it there. If not, just deposit it into your personal account. You need to keep security deposit money, cleaning deposits etc in a separate account. The rent money is yours regardless of disputes that may arise in the future.
2007-10-11 02:44:47 · answer #3 · answered by Toodeemo 7 · 0⤊ 0⤋
You can deposit it in any account you like. However, t's better when you don't mix your personal and rental funds. Put the funds into the account you set up and pay the bills from this account. That way, you have a better picture of your cash flow.
Also, when you file your tax return., all the figures are in one place. Less possibility of pulling your hair out trying to get it together.
2007-10-11 02:27:20 · answer #4 · answered by TedEx 7 · 0⤊ 0⤋
I'm sure the law varies from state to state, but the real answer will be in he contract that you use with your tenants. If it states that rent and deposits are kept in a co-mingled account, then you can just use your checking account.
However, for accounting purposes, you probably should use a separate account...
2007-10-11 02:26:56 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You can deposit it right into your checking account..
The escrow account is just for their deposit and last month's rent....
Good luck..
I have a rental property in Quincy, MA
2007-10-11 02:22:47 · answer #6 · answered by James 3 · 1⤊ 0⤋