Standard ACH deposit collection requires a US routing number and account number. International tenants, including students on F-1 or J-1 visas, diplomatic personnel, corporate relocation hires, and foreign national investors, often don’t have either at move-in. The fix isn’t to handle each case as a one-off exception. It’s a defined alternate-payment policy that covers collection and refund before the first international tenant ever applies.
Why Can’t International Tenants Use Standard ACH for a Security Deposit?
ACH transfers move funds between US bank accounts using a routing number and account number, both of which require an existing US bank relationship. A tenant who just arrived from abroad usually hasn’t opened one yet.
This shows up most often with a few tenant types:
- Students on F-1 or J-1 visas, who arrive before their first semester and haven’t had time to set up banking.
- Diplomatic personnel, whose deposits are sometimes paid directly by an embassy or government entity rather than the tenant.
- Corporate relocation hires, whose deposits may be routed through an employer’s HR or relocation vendor.
- Foreign national investors or long-term visitors, who may hold funds in a foreign account with no US equivalent yet.
In each case, the property manager is left choosing between an international wire, a foreign check, or accepting a payment routed through a third party that doesn’t look like a standard tenant-to-PM transaction.
What Are the Alternatives to ACH for Collecting a Security Deposit?
International wire transfer. This is the most reliable option. Wire fees typically run $15 to $50 on the sending end and the transfer can take two to five business days to arrive. The property manager should require the deposit amount to arrive in full, net of any fees, and should confirm receipt before granting possession.
Foreign checks. A check drawn on a foreign bank can take 30 days or longer to clear, and most banks place extended holds on international items. Granting possession before a foreign check clears means carrying the full deposit exposure if it doesn’t settle.
Embassy or employer-paid deposits. Diplomatic and corporate relocation tenants often have a paying entity that isn’t the tenant. Establishing the payment process with that entity early, ideally before lease signing, avoids a last-minute scramble to figure out how the money will actually move.
Can a Property Manager Require a US Bank Account to Collect a Security Deposit?
Yes. A property manager can set payment method requirements, including requiring ACH or domestic wire transfer, as part of the lease terms. The requirement needs to be applied consistently to every applicant, not selectively.
For tenants who haven’t opened a US bank account yet, requiring an international wire transfer as the interim method, with precise instructions and confirmed receipt before move-in, keeps the policy consistent without blocking a qualified applicant over a timing issue.
How Do You Refund a Security Deposit to a Tenant Who Has Left the Country?
Confirm banking details at move-out, not move-in. A tenant who arrived without a US bank account may have opened one during the lease term. Ask before assuming a wire is necessary.
Wire the refund if the tenant has returned home. This is the most reliable method for getting funds to a foreign account. Confirm account details in writing, initiate the transfer within the applicable state deadline, and keep the wire confirmation as proof of timely payment.
The state deadline still applies, regardless of where the tenant has relocated. The deadline is tied to the property’s location, not the tenant’s current address. New York requires the deposit to be returned within 14 days of move-out. Massachusetts requires it within 30 days. Neither deadline pauses or extends because the tenant is now overseas.
Wire fees are generally the property manager’s cost, not a deduction. If the wire is the refund method the property manager requires or the only method available, the fee is typically absorbed rather than subtracted from what the tenant is owed.
How Rentable Handles Non-Standard Deposit Configurations
Property managers using Rentable work with their account team to configure tenancy setups that don’t fit the standard ACH workflow, including international wires, embassy payment arrangements, and corporate relocation deposits. Non-standard doesn’t have to mean undocumented. Having a defined process before an international tenant applies is the difference between a routine move-in and a scramble.
Book a demo to talk through how Rentable handles non-standard deposit configurations for your portfolio.
Frequently Asked Questions
Can a property manager require a US bank account to collect a security deposit? Yes. Payment method requirements, including requiring ACH or a domestic wire transfer, can be set as part of the lease terms as long as the policy is applied consistently to every applicant.
Can a property manager refuse to rent to someone without a US bank account? No. Lacking a US bank account isn’t a basis for denying an otherwise qualified applicant. The property manager should offer a workable alternate payment method, such as an international wire, rather than treating the absence of US banking as a disqualifier.
What happens if a security deposit wire transfer arrives short due to bank fees? The property manager should require the full deposit amount net of fees, meaning the tenant or their bank sends the deposit amount plus the estimated wire fee so the net amount received matches what’s required.
How do property managers refund security deposits to tenants who’ve left the country? An international wire transfer to the tenant’s foreign bank account is the most reliable method. Confirm the account details in writing before initiating, and keep the wire confirmation as documentation of a timely refund.
Do security deposit return deadlines still apply if the tenant has moved abroad? Yes. The deadline is set by the property’s location, not the tenant’s country of residence. A 14-day deadline in New York or a 30-day deadline in Massachusetts applies the same way whether the tenant is still in-state or has already left the country.
Can a property manager deduct wire fees from a security deposit refund? Not as a standard deduction. If the wire transfer is the refund method the property manager requires, the fee is typically absorbed by the property manager rather than subtracted from the tenant’s refund.
