Do you take security deposits? My new attorney tells me hardly any operators in my state do now. They do an entrance fee even if someone moves into a home that is already in the park. State regulations require security deposits be held in a trust account safe from creditors. All deposits can be held in one account. Interest must be paid.
I don’t mind showing security deposits as a liability on my accounts. But I expect a trust account will be aggravating to deal with.
On one hand, I like to think the security deposit is a motivator. I think people expect an entrance fee when moving a home in but not if moving into a home that is already in the park. Paying a non refundable fee may make them fee justified in trashing the place, particularly if it is $700 for a rental home.
On the other hand, 75% of the time, people don’t get the deposit back because they are evicted or don’t pay the last month.
What do you do and why?