A licensee is acting as the property manager for the owner of a small office building. Before the licensee can receive a security deposit from a tenant, she must

While there may be regulations regarding the amount of a security deposit, these vary by jurisdiction and do not universally stipulate a 1% cap on deposits. The requirement to limit the deposit amount is not a prerequisite for accepting a security deposit; rather, it is important to have the proper management agreement in place first.

Obtaining a tenant's credit report is an important step in the screening process but is not a prerequisite for collecting a security deposit. A credit report assesses the tenant's financial reliability but does not relate to the legal authority needed to manage a property or accept deposits.

Providing an inventory checklist is a good practice for documenting the condition of the property but is not a requirement before accepting a security deposit. This checklist serves more as a tool for both parties to ensure accountability for the property's condition rather than a necessity to establish management authority.