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CA Deposit in escrow acct. required? landlord disadvantages?

Are deposits required by ca law to be deposited in an escrow account?  What are the disadvantages to landlords?
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If you have rental property, you should open a separate checking for income/expenses and saving account for security deposits. This is especially important if you get audited by the IRS. Except for a few cities, the landlord is not required to pay interest on a tenant's security deposit. Check your area. "landlord disadvantages?" ....what are you looking for with this question?
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