• 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

Still have questions?

Create a support ticket anytime, and we'll get back to you as soon as possible.

Submit a support ticket