Have an owner that holds the security deposit? Below are the steps to collect it from the owner and then pay damages or repairs and refund the balance to the tenant.
Step 1 - Request an owner contribution for the full amount of the security deposit that is held on the lease
(There are two ways to do this. Options are listed below.)
- Option #1 - Owner Contribution through the Owner Portal (ACH or CC payment through the Owner Portal)
The owner can sign into their owner portal and pay via eCheck or credit card. This will typically settle into the operating trust bank account. You can Go to Step 2 if the owner contributed through the portal
- Option #2 - Manually record the Owner Contribution - CHECK/CASH/MONEY ORDER
Record a payment in Rentvine if the owner gives you a check/cash/money order
Click on Accounting on the left side
Click on Money In from the drop down
Click on the green Actions button on the right,
Select Record Owner Payment
In the Record Owner Payment screen, complete the fields below
- Select the Portfolio
- Select the Owner
- Enter in the Amount of the security deposit/owner contribution
- Enter in the Date Posted
- Select the Payment Type
- Enter in the Description
- Enter in the Reference
- The Account will default to your default account for an owner contribution, but you can change this if needed
- The Bank Account account will pre-fill to your default operating trust bank account, but you can update this if needed
- Click the green Save button
*Note: For option 2, remember to record a deposit for the owner payment. How to Record a Deposit
Step 2 - Enter a Journal Entry to transfer the owner contribution to the Owner Held Security Deposit account
- From the left navigation menu click on Accounting / Transactions / Actions / New Journal Entry.
Create and save the Journal Entry similar to the example below:
Step 3 - Find the specific lease that you would like to return the security deposit
- Click on Leases on the left side of the screen
- In the search field, type the tenant(s) name or the address for the lease
- When you have located the lease, click on it
- You can also search for the tenant, property or lease in the global search then click on the lease.
Step 4 - Add any necessary additional charges to the lease
(ex. tenant damages)
- While in the lease, to add charges, click on the green Actions button, and then click on Add Charge
- Select the appropriate chart of accounts
- Enter the charge amount
- Select the date posted for the charge
- Add a description to the charge.
- Click Save, or Save and Add Another to add multiple charges.
Step 5 - Release the Deposit
- Click on the green Actions button, and click on Release Deposit
- Enter the Date Posted
- Enter in the full Amount of the deposit at the top
- Fill in a Description
- In the Deposit Balances section, enter in the full amount of the deposit again in the Security Deposit field in the middle under Release Amount
Step 6 - Pay Charges from the Security Deposit
If you created charges, you should see them under the Pay Charges section.
Fill in the amount of money you would like to apply to those charges in the Amount to Pay field if you want to pay those charges using some or all of the security deposit.
You should now see the Total Open Credit amount at the bottom has changed. This will be the total security deposit less any charges that you are paying from this security deposit. Click on the green Post button at the bottom right
Step 7 - Refund the Tenant
- Go back into the lease
- Click on the green Actions button, and click on Refund
- Fill out the information:
- Bank Account - Choose the applicable bank account that you want this refund to be coming from.
- Name on check and Date posted will automatically populate. Edit if necessary.
- For Payment Address, you can leave this blank if the tenant contact has an address. If not, you can click on Custom Address to the right to fill in an address
- Enter in the amount you would like to refund in the Amount to Refund field (this will default to the total open credit)
- Click the green Refund button at the bottom
- On the next screen, click the green Actions button
- Select Print Checks, and mail the check to the tenant
Step 8 - The final step is recording a bank transfer within Rentvine (if applicable)
If the owner contribution went into the same bank account that the tenant refund was paid from then you can skip this step. There is no need to record a bank transfer in Rentvine.
If you refund the security deposit money from a bank account that is different from the bank account that the owner contribution went into, then you will want to transfer the money at your bank, and you will also want to record a new bank transfer in Rentvine as well to account for the transfer at your bank.