Security Deposits: Releasing to Owner at move-in

Home » Owner Operations » Security Deposits: Releasing to Owner at move-in
Owner Operations, Tenant Operations No Comments

As a property manager, your policy might require you forward collected tenant security deposits to the owner of the property prior to the tenant moving out of their rental.

To document this in the program, follow the steps below:

1.  Move a tenant into their unit as normal, through the property tab, and  document their security deposit charge.

2. Record your tenant’s security deposit in the tenant’s security ledger, however indicate “none” for the bank account.  Use the description line to note that the tenant deposit is being released to the owner.

3. Head to your Settings tab and select Setup Categories.  From here create a new income category for tenant security deposits that will be released to the owner.

4.  Next, post a payment in the Property’s ledger for the security deposit payment and be sure to leave the tenant at “none,” and this time you’ll want to indicate which bank the funds were deposited into.  You can add the tenant’s name in the memo line for reference.

5.  Now you will be able to disburse these security deposit funds to the owner by posting an expense transaction with the category of  “Owner Disbursement”  in the property ledger.  Be sure to indicate the same bank account for this transaction that was selected in  #4.