Every security deposit accepted by a property manager for a rental property will be?

When a property manager collects a security deposit from a tenant, it is indeed crucial that this transaction is often recorded on a separate ledger for each tenant. This practice ensures that there is a clear and organized record of each deposit, including the amount received, the date, and any relevant details regarding the property or the tenancy.

By maintaining individual ledgers for each tenant, property managers can effectively track the status of deposits, which is essential for transparency and accountability. This organizational method allows property managers to easily access information pertinent to each tenant's lease agreement and ensures that, when it comes time to return the deposit, all calculations regarding damages or deductions can be made accurately and fairly.

While documenting deposits on the owner's ledger or depositing them into a property’s business account could be part of the property management process, these methods do not emphasize the importance of tenant-specific tracking, which is vital for proper handling of security deposits. Additionally, holding security deposits uncashed and sending them to the property owner does not align with established best practices for managing tenant funds.