When a tenant signs a lease agreement, they are typically required to pay a security deposit. This deposit is held in escrow by the landlord until the tenant moves out. If the tenant damages the property, the landlord can use the security deposit to cover the cost of repairs. If the tenant does not damage the property, the landlord must return the security deposit to the tenant within a certain period of time.

In addition to security deposits, landlords may also collect rent payments through escrow. This is especially common for properties that are managed by a property management company. When rent payments are made through escrow, the property management company holds the funds in escrow until the end of the month. Then, the property management company sends the rent payments to the landlord.