Just wondering regarding sale of park and security deposit/cleanup fee. There are security deposits in place from previous owner but since taking over park we just do a non refundable site cleaning fee. Would this be handed over on a sale just the same?
Negotiable! Just curious, when do you book it as income if it’s non-refundable? At time of receipt?
As Brandon said, it’s negotiable. I bought one property that used them in lieu of the deposits, and the seller refused to transfer them (“they’re not a deposit”), if I ever sold a park, I wouldn’t transfer them.
Thanks for the info guys! I appreciate it! And yes Brandon, we record it when tenant moves in
If it’s non refundable and you record it as income at the time of receipt, then I would say it’s yours to keep.