Real Estate Banking
Tenant Lease Security Services
Chase offers customized tenant lease security services for real estate owners, agents and managers of multifamily residential, commercial and cooperative properties.
If you are a landlord, a building agent or property manager, you know how time-consuming and complicated processing tenant lease security deposits can be.
- How should you figure interest?
- How should you figure withholding?
- Even with the necessary staffing, how do you ensure you are following all applicable laws?
- Are you entitled to retain an administrative fee?
Chase can help answer these questions and ease the administrative burden by expediting the opening of new accounts, deposits, withdrawals and by promptly addressing your tenant lease security needs.
How It Works
We open an interest-bearing Tenant Lease Security (TLS) Deposit for you that complies with all applicable state and federal regulations. This service can offer you:
- Timely, Concise Reporting – Concise, easy-to-read monthly status reports for all security accounts are sent to the agent for each property, listing the tenants' name, security deposit amount, and amount of interest earned. Information can be organized to meet your needs -- by unit number, floor or line, or alphabetically. Chase also provides monthly transaction recap reports and a check register. If you need to review a tenant's account, Chase can access 25 months of historical data online, enabling you to find answers quickly.
- Administrative Fee Deductions – Some states entitle you to an administrative fee on your tenant lease security deposits. For example, in New York you are entitled to an administration fee equal to 1% of the interest earned on the tenant lease security deposits. This fee is deducted from the interest earned on the account, and a check is mailed to you each quarter. If you choose, you may waive the administration fee and have all the interest paid to the tenant. For laws in specific states, contact TLS Customer Service at 1-800-343-4358. Within area codes 212, 646 & 718 call 212-648-2900. Product offering covers 40 states.
- Interest – Interest is compounded monthly and calculated from the day of deposit to the end of the month. If there is a withdrawal prior to the end of the month, interest for that month is forfeited.
If a tenant moves during the year, withdrawals will be sent to you for distribution. You can even set up each building with separate processing instructions regarding mailing of 1099s, checks and almost any other detail that is important to you. The account cannot be accessed and money cannot be removed without your authorization, so your security deposits remain secure.
For the payment of interest and mailing of checks, you can choose among certain options:
- Checks for the tenant's portion of the interest may be issued annually at year-end
- Interest may be held in the account until the tenant moves
- All checks and 1099s automated process will be mailed directly to your tenants
- IRS Compliance – Chase handles the tax paperwork and meets applicable deadlines. We manage recertification of your tenants' tax identification numbers. If we do not receive the required forms, we automatically withhold at the appropriate tax rate, as required by law, and contact the tenant to get the proper form. Chase's advanced systems help track all accounts accurately and thoroughly. We also manage the tax issues and fulfill IRS reporting requirements, and at year-end, issue all forms, including 1099s and interest checks, correctly and on time.
The Chase Advantage
To develop our tenant lease security services, Chase worked with landlords to learn the features and services that offer added convenience. The result is program that offers a high-level of customization to accommodate your unique needs.
Best of all, Chase handles all the administrative work for you:
- Timely payment of all interest due
- Collection and issuance of appropriate tax forms
- Accurate and comprehensive IRS reporting
To learn more about our tenant lease security services and relevant applicable laws in your state,
please contact us.