What must be done within thirty (30) days of receiving a security deposit?

After receiving a security deposit, the law typically requires that the funds be deposited into an interest-bearing escrow account within a specified timeframe—in this case, within thirty days. This practice is designed to protect tenant funds and ensure that they are held securely until the terms of the lease are fulfilled.

By depositing the security deposit into an interest-bearing account, property managers can comply with legal requirements while also potentially earning interest on the funds, which may be required to be returned to the tenant at the end of the lease, depending on local regulations. This method also ensures that the money is kept separate from the landlord's personal funds, maintaining the integrity of the deposit and protecting the tenant’s rights.

Other options, such as returning the deposit to the tenant, notifying the tenant about the deposit's usage, or transferring it to the landlord’s personal account, do not meet legal standards and can lead to compliance issues or loss of tenant trust.