How to transfer a security deposit to a new lease

To transfer a deposit:

  1. Navigate to Rentals > Rent roll.

  2. Click on the original lease.

  3. From the lease summary page, click Financials > Issue refund.

  4. Issue a refund out of the bank account where the funds are currently located, in the total amount of the deposits being transferred.

    Add a memo that shows this is an adjusting transaction and that there is no real world equivalent. For example, Internal transfer: Moved to a new lease


  5. Receive a payment on the new lease for that same amount.

    Add a memo that shows this is an adjusting transaction and that there is no real world equivalent. For example, Internal transfer: Tim's security deposit from unit C to D.

  6. Deposit that payment into the bank account.

    Add a memo that shows this is an adjusting transaction and that there is no real world equivalent. For example, Internal transfer.

When you're done, the bank account balance should be the same as when it began. Include the refund and bank deposit in your next bank reconciliation.

 

Article #: 112855

 

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