Tenant Security Deposits
Rentec Direct 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 separation of funds.
The Deposit Ledger Basics
To locate the tenant deposit ledger in your software, follow these simple steps.
In your Rentec Direct account:
- Click Tenants from the main menu.
- Click on the tenant balance (or choose View Ledger from their menu). At the top of the ledger, you'll find their On Deposit balance. A red balance will indicate the deposit is not yet fully funded. A green balance will show that it is fully funded.
- Click the On Deposit button to enter the deposit ledger.
Here you will be presented with the tenant deposit ledger and actions. The deposit ledger has been designed to allow you to complete all the tasks necessary for receiving and processing deposits and other separately held funds.
Within the Security Deposit ledger you have these options:
- Receive Deposit to receive a deposit payment from a tenant to apply to their deposit balance.
- Return deposit to return some or all deposit balance back to the tenant.
- Apply Deposit as Tenant Credit is used to transfer funds from this deposit ledger and apply it to the tenant's ledger to pay for a charge (e.g. using a portion of the deposit to pay a rent balance or for damages).
- Increase Deposit Due is used when you want to charge the tenant an additional deposit amount.
- Migrate Deposit is used when a tenant moves and you want to transfer their deposit balance to be associated with the new property.
- Transfer Deposit is used when you want to transfer money from the tenant's deposit ledger directly to the property ledger.
In addition to the above actions, you have Edit, Delete, and Print options available.
Edit a Security Deposit Transaction
You can edit any existing ledger line by clicking the Edit icon to the right of it.
Delete a Security Deposit Transaction
If you wish to remove an entry, click on the Edit icon and then the Delete button.
Print a Deposit Ledger
To print the deposit ledger for you or your tenant's records, enter the deposit ledger and click the Print Deposit Ledger button in the upper-right corner.
Important Note: It's best to manage the Tenant Security Deposit, prior to moving out the Tenant. If transactions on the Tenants Security Deposit are made after moving out a Tenant, the transactions may need to be added manually to property and/or bank account ledgers.