How can a landlord properly collect a security deposit?

In California, a landlord must properly collect a security deposit in order to protect their own rights as well as the rights of the tenant. A landlord should always require a written lease agreement, clearly defining any rules about security deposits, such as what the deposit can be used for and how it will be returned when the tenant moves out. The landlord must also disclose in writing the state law governing the holding of security deposits as well as the amount of the deposit. This document should also include information on the interest rate (if any) that will be applied to the deposit, and should be signed by the landlord and the tenant. The landlord must also inform the tenant in writing of the name and address of the bank in which the deposit will be held and any restrictions or charges that may be imposed. The landlord must also inform the tenant of the bank’s name, address, and account numbers. In addition, the landlord must place the deposit in a separate, interest-bearing or trust account, or use a surety bond. The landlord must also enclose a receipt for each payment made for the deposit. The receipt should include the name of the tenant and the address of the rental unit, the date the deposit was paid, the amount of the deposit, and the name and address of the landlord. If the tenant pays in cash, the landlord is required to provide the tenant with a written receipt for the payments made as well as a description of the property. By taking the necessary steps to properly collect a security deposit, a landlord can protect their rights and the rights of their tenant.

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How can a landlord properly collect a security deposit?

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