• Key deposits
  • Parking deposits
  • Pet deposits
  • Storage deposits

To record a non-refundable deposit

  1. Charge the tenant or as usual.

    Non-refundable deposits are always classified as income on your chart of accounts.

  2. Receive payment as usual.

Things to think about:

  • Non-refundable deposits are income and will appear on reports such as the Income Statement and Rental Owner Statement.
  • If there's even a slight chance that the resident can get the money back, you'll want to record the money as a liability. In this case, you'll take the money as income when it is forfeited by the resident.
  • Your area might include laws on proper handling and accounting for non-refundable deposits. Guidance from your local real estate commission or accountant should take precedence over the guidance presented in this topic.


Article #: 111129

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