Can tenants use Venmo or Cash App for Security Deposits?

Sep 24 (edited) • Landlord/Tenant issues

Only if those deposits are going to where they're supposed to be going. I've had this come up several times actually, where you'll have a, um, listing agent say, oh, just pay it to me and then I'll pay it to the seller, or I'll pay it to the, to the, uh, to my company. You cannot do that.

A security deposit could be paid by wire TO THE COMPANY THAT'S DESIGNATED AS THE ENTITY TO HOLD THE DEPOSIT. Some companies may have business accounts through these apps, and then you can pay the security deposit through that BUSINESS ENTITY app -- not to the agent, who then turns it over to the landlord or the real estate brokerage.

Mishandling of funds is one of the leading reasons that agents and brokers lose their licenses because of putting the money in the wrong account. Co-mingling, holding business funds in private accounts, etc., is all a pathway to disaster!

0 comments