Owner Held Security Deposits
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      1. Rentvine Knowledge Base
      2. Leases
      3. Owner Held Security Deposits

      How to Return / Refund an Owner Held Security Deposit to a Tenant

      Have an owner that holds the security deposit and you need to return / refund it to the tenant? Follow the steps below.

       

      Will the Owner be returning the Owner Held Security Deposit to the Property Management Company?

      Please select one of the following scenarios to proceed with the steps

      Scenario #1 - Although the owner is not providing the Owner Held Security Deposit to the Property Management Company, you still intend to settle any unpaid lease charges, move-out charges, and refund any excess amount to the tenant. 

      Scenario #2 - The Property Management Company will receive the Owner Held Security Deposit from the owner, which will be utilized to cover any outstanding lease charges and move-out charges. Any remaining amount will then be refunded to the tenant.

       

       

      Scenario #1 - Although the owner is not providing the Owner Held Security Deposit to the Property Management Company, you still intend to settle any unpaid lease charges, move-out charges, and refund any excess amount to the tenant.

       

      Step 1 - Complete the remaining steps by utilizing the Move Out Process


       

      • In case there is a surplus amount after settling all the lease and move out charges, and the owner intends to reimburse the tenant directly, it is essential to create an extra "move out charge" in the accounting segment of the move out process. This additional "move out charge" must match the exact amount of the refund that the owner will disburse directly to the tenant. It is advisable to use an income account labeled "Security Deposit Transfer" as the COA / GL account and provide a description that clearly indicates that the owner will be making a direct refund to the tenant.

       

       

       

       

       

      Scenario #2 - The Property Management Company will receive the Owner Held Security Deposit from the owner, which will be utilized to cover any outstanding lease charges and move-out charges. Any remaining amount will then be refunded to the tenant.

       

      Step 1 - Request an owner contribution for the full amount of the security deposit that is held on the lease

       

      • 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 the owner contribution 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 belowSnip20211112_161

            • 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 - Complete the remaining steps by utilizing the Move Out Process