How do security deposits work as a homeowner or property manager?

We hold security deposits with each tenant. Alcove is responsible for collecting damages if they exceed the deposit amount.

Alcove holds and manages security deposits for each tenant in our escrow account. We conduct a move out inspection after each tenant moves out and deduct any damages from their security deposit.

Due to the NC Tenant Security Deposit Act, Alcove is unable to pass on the deposits to the landlord or property manager.

Alcove also has $2M liability insurance covering each of our homes. If damages exceed their deposit, Alcove is responsible for collecting for the damages or will cover the expense ourselves.