Compliance
Last updated: February 2025
DepositHive is committed to operating in full compliance with federal, state, and local laws governing security deposit management. This page provides an overview of our compliance framework and state-specific considerations.
Our Compliance Approach
Security deposit regulations vary significantly by state. DepositHive maintains state-specific compliance logic to ensure that:
- Deposits are held in federally insured accounts as required
- Tenant notification and disclosure requirements are met
- Segregation of funds is maintained per applicable rules
- Interest or return obligations are calculated and distributed correctly
- Record-keeping requirements are satisfied
State Availability
DepositHive services are available in jurisdictions where our model complies with local law. Availability differs for residential and commercial properties due to varying regulatory frameworks.
Commercial Properties (2.25% APY)
Available in 48+ states with minimal restrictions. Commercial security deposit regulations are generally more flexible than residential. Limited availability in New York and California; contact us for eligibility.
Residential Properties (2% APY)
Available in most states where investment of residential security deposits is permitted. Some states require specific account types, tenant consent, or disclosure language. Limited availability in Maine, New Jersey, and New York. See our Available States section for the current list.
Key Compliance Obligations We Handle
Segregation of Funds
Tenant deposits are held in separate, identifiable accounts. We do not commingle tenant funds with operating funds.
FDIC Insurance
Deposits are placed in FDIC-insured accounts at E-Trade and Fidelity. Coverage is subject to applicable FDIC limits per depositor per institution.
Tenant Disclosures
Many states require landlords to inform tenants where deposits are held and whether interest is earned. DepositHive provides disclosure templates and automated compliance features to support these requirements.
Return Distribution
Some states mandate that tenants receive a portion of interest earned on their deposits. Our platform supports state-specific distribution rules.
SOC 2 Type II
DepositHive maintains SOC 2 Type II certification, which independently attests to our controls around security, availability, processing integrity, and confidentiality. Enterprise customers may request a copy of our SOC 2 report under a non-disclosure agreement.
Your Responsibilities
As a property manager or landlord using DepositHive, you remain responsible for:
- Complying with applicable lease agreements and landlord-tenant laws
- Providing required tenant notices and disclosures
- Returning deposits (plus applicable interest) to tenants when due
- Maintaining records as required by your jurisdiction
DepositHive provides tools and support, but compliance with your specific legal obligations is your responsibility. We recommend consulting with a qualified attorney regarding state and local requirements.
Regulatory Changes
Laws governing security deposits change periodically. We monitor regulatory developments and update our platform accordingly. State availability may change if new laws affect our ability to operate in a jurisdiction. We will notify affected customers of material changes.
Contact
For compliance-related questions or to confirm availability in your state, contact us at help@deposithive.com or partner@deposithive.com.