What must happen before a property manager can transfer a security deposit to the owner?

Before a property manager can transfer a security deposit to the owner, it is essential to notify the tenant of who is holding the deposit. This requirement is in place to ensure transparency and maintain open communication between all parties involved. By informing the tenant, they are made aware of where their funds are being held and who is responsible for managing those funds. This step helps protect both the tenant's and owner's rights, as the tenant retains knowledge about their security deposit, which is critical in contexts of lease termination or potential disputes over the return of the deposit.

The other options either do not pertain directly to the appropriate procedure for transferring security deposits or are not requirements that must be fulfilled prior to such a transfer. For example, providing the owner with a receipt or making a bank deposit might be part of administrative tasks, but they do not ensure that the tenant is adequately informed about the management of their deposit. Requesting formal approval from the tenant doesn't align with standard practices regarding security deposits, as the owner typically retains rights to the deposit in accordance with the lease agreement.