Rentec helps you keep track of deposits for your tenants via a separate deposit ledger to ensure these deposit funds do not get mixed in with regular rent payments and monthly transactions. Most states as well as general accounting principles for landlords require this.
First, click on the Tenants tab, then click on the balance of the tenant.
Now in the upper-right corner you will find the deposit balance. A red icon will indicate the deposit is not yet fully funded. A green icon will show that it is fully funded. Click the amount to enter the deposit ledger.
Here you will be presented with the tenant deposit ledger and actions. You can edit any existing ledger line by clicking the edit icon to the right of it. You can also perform various options such as receive deposit, return a deposit, charge against the deposit, or apply part of the deposit as a credit on the tenant’s account. The most common actions will be to receive deposits when the tenant pays their full or partial deposit, and returning deposits when the tenant moves out. If you are charging for damage against the deposit, choose ‘Charging against deposit’ instead and enter the value.
If you wish to modify the amount of deposit due from this tenant, edit the line labelled ‘Tenant Deposit Due’, and change the amount to the desire amount. If you wish to remove an entry, edit the line and follow the blue “delete” option.
If you place the security deposit into your Undeposited Funds account, it will show up within your deposit summary preceded by a (D) followed by the associated property name, signifying this is a tenant security deposit.
To print the deposit ledger for you or your tenant’s records, enter the deposit ledger and click the printer icon in the upper-right corner (not shown on the screenshot above).
If you have charged against the tenant’s security deposit, you will want to post an income transaction to your property indicating the amount of the funds you’re moving from the security account to your operating account. We recommend you create a custom “other” category to document these transfer of funds. You can do this under the Settings tab, Setup Categories. Be sure to indicate “none” in the tenant field. However, to track where the funds came from, you can add a note in the description field.
If you have applied a portion of the tenant’s security deposit as a credit to the tenant’s regular ledger and you want those funds to show up as income for your property, you will want to follow a second step after exiting their security deposit ledger. Head to the tenant’s regular ledger and edit the “credit” transaction. Indicate the property and bank account you wish this tenant credit to apply to. Save your changes.
SPECIAL NOTE: If you are using one bank account for all of your transactions – security deposits, rent, expenses – when returning or charging against tenant deposits, you will want to follow additional special instructions. Click here for more details.