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.