Final answer:
A property owner, or sometimes a rental management company, usually holds deposits such as the key deposit or last month's rent. Third-party escrow services can also be used, particularly in real estate transactions to handle insurance and property tax payments.
Step-by-step explanation:
Who holds onto any forms of deposits, such as a key deposit, last month's rent (LMR), or any additional months of rent paid can vary depending on jurisdiction and the terms of the rental agreement. However, generally speaking, the property owner or the management company (possibly indicated by 'RYPM') holds these funds. In some cases, especially for real estate transactions, a third-party escrow service can be used to hold these funds until certain conditions are met or the agreement comes to an end.
In the case of rental agreements, after the termination of the leasing period and upon vacation of the premises, all deposits should be returned to the tenant as long as there are no damages or outstanding dues. If the tenant does not vacate the property by the termination date or leaves belongings behind, they may be liable for additional rent and damages. In the context of buying a home, escrow accounts are often used to manage home insurance and property tax payments as part of a homeowner's monthly mortgage payment.