Tenant Deposits – special account instructions

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For instructions of how Tenant Deposits work within Rentec, follow this link.

If you are using one bank account within  Rentec for all of your transactions – rent collections, tenant security deposits and property expenses – you will want to follow the steps below to ensure your ledgers reflect security deposit transactions correctly.  (If you are using two bank account – one operating and another for deposits, use the link above for complete instructions.)

1.  When using the action of “charge against” in the tenant’s security ledger, and the amount is for a property level expense (paying a vendor to clean the carpets, paint the unit, etc.) indicate “none” for the bank account.  This will charge the tenant, but leave the funds in the bank account for when you post that property level transaction.

2.  Next, create a new income category under your Settings tab/Setup Categories.  Call this new income category “forfeited security deposits.”

3.  Now post an income transaction to the property your tenant lived in, through the property tab.  Indicate “none” for the bank account and tenant, and type a memo line description “Mr. Smith’s forfeited deposit.”  Indicated the newly created income category from #2.

4.  Once you’ve credited your property the forfeited deposit, you can post the property expense and indicate your bank account in the transaction.

5.  If you are going to use a portion of the deposit for rent due, use the action of “apply as credit” and select “none” for the bank.  When you are editing the tenant’s regular ledger for this credit transaction to indicate the property, be sure to leave the account as “none.”  Save your changes.