How to Record a Security Deposit

This article will show you how to record a management held security deposit on a lease.

Step 1 - Create a charge on the lease for the Security Deposit 

• On the lease use the green actions button "add charge". Use your normal security deposit chart of account.

• • Click on the Green Actions button and select Add Charge from the dropdown menu.
  • Fill out the New Lease Charge form:
    • Account - Choose the appropriate security deposit account, this is typically the management held security deposit account.
    • Amount - Type in the dollar amount that is being charged
    • Date Posted - Choose a date
    • Description - Type in a comment, ie Security Deposit
    • Click Save.

Step 2 - Tenant pays the Security Deposit charge 

• The tenant can pay this via the portal by submitting an eCheck or Credit Card payment or the property manager can manually record the payment (check, cash, money order
  
  • If you are manually recording this payment and have a separate bank account that holds Security Deposits, change the bank account from Auto to Your Security Deposit Bank Account.
    
    
    

• Once the charge is paid the lease will show that there is a held security deposit.