New Landlord - How do I set up an escrow account? : ezLandlordForms

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New Landlord - How do I set up an escrow account?

Kristan H

started a topic over 13 years ago

I need to set up an escrow account for the security deposit my new tenants gave me. Is this as simple as just calling my local bank? Any tips? I have never had to do this before. Thanks!

1 Comment

Eric D

said over 13 years ago

There are typically two ways of doing it - and check your state laws to determine if both or either are appropriate.
1) Get a W-9 form from the IRS - or go to http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3 (if link doesn't work, go to IRS.gov and look on left hand side for W-9 form) and have the tenant fill it out. Then go into the bank and ask them to open a tenant/landlord escrow account.

2) Some states (such as NH) allow you to open an escrow for the entire building, in this case you don't need to get the W-9 filled out by the tenant and you can place the security deposit in that location. If your state mandates it, make sure you give them the information as to where the money is being held.