Making ChrootDirectory directory writable by SFTP user

I ran into the same problem with my in-house SFTP. What I did to get around this is:

Inside your sshd_config file:

Match group     sftpusers
  ChrootDirectory %h

Inside your /etc/groups file, add your sftp user to the sftpusers group (create it if it doesn't exist):

sftpusers:x:6000:user1,user2

For the ChrootDirectory, make sure you chown the directory to the following (warning be-careful of the directory that you are running this command on, make sure it is being run only on the directory that the user logs into, the -R commend means recursive, so if there are subfolder you do not wish this to command to include, remove it. Also a SFTP user should never be given access to a root level system directory like /etc, best to make a folder under something like /usr/local/alcatraz and give them access to that):

chown -R root:sftpusers userChrootDirectory

Chmod the directory to have the permission you desire, something like:

drwxrws---

If you require more information, let me know, this is just the highlights, that should get you to where you want to be.