[Harmless Teddy Bear]

It is generally paid by check or money order not "Cash" as you are referring to it.

It is held apart in a separate bank account until the tenant moves out.

At that point it may or may not become income depending on the terms of the lease. If the tenant leaves unpaid utility bills, has trashed the place, has unpaid rent due or has vacated without notice then all or part of the money becomes income at that point.

The interest on the account is income and is accounted for to the IRS.

[dynachrome]

The article referred to “all cash”. Me, I always paid by check.