There are 2 ways to receive owner-held security deposits:
The tenant pays the rental owner.
The tenant pays your company and you pay the rental owner.
Option 1: Tenant pays the rental owner
A refundable deposit is one that the resident can get back after some predetermined period of time, such as the end of a tenant's lease. Common examples include:
Last month's rent
A non-refundable deposit is a fee that can never be recovered by the tenant. Common examples include:
To record a non-refundable deposi...
There are two main processes in the lifecycle of a tenant security deposit:
Receipt of Security Deposit upon move-in
Refund or disbursement of Security deposit upon move-out.
A withheld deposit is a liability account, from a resident, that is reallocated as income to cover an expense(s).
Synonyms include applied deposit and security deposit income.
If you allow owner-held security deposits, you’ll need to track them for record-keeping purposes. In this article, you’ll learn how to set up owner-held security deposit accounts.
Set up owner-he...
Typically, when a tenant moves out, you refund their security deposit. If the tenant has caused damages to the property, you usually withhold some or all of the deposit. Here’s how to do that for...
If a tenant moves from one unit to another, you can transfer the security deposit from the old lease to the new lease. If your company is currently holding the security deposits on this property, t...
This topic covers how to move a security deposit or other deposit when you'll no longer be managing a property. This topic will cover the following scenario:
You've worked with the rental owner, Ba...
This topic covers how to record a security deposit or other deposit, like last month's rent, when you've gained a new client and their old management company will be sending along the security depo...
Depending on your local regulations, security deposits may need to be kept in an interest- bearing account. Rules vary from state to state. If you're not sure, your best bet is to check with your l...