How to Transfer a Security Deposit to Another Lease that is Under a Different Portfolio

Is a tenant moving to a new lease and you need to transfer the security deposit that they have already paid to another lease? This article will show you how to transfer the security deposit when the leases are under different portfolios.

The security deposit transfer can be accomplished by creating lease charges and lease credits.

1. Create a general ledger account labeled "Clearing". This will need to be a held liability account. Make sure the toggle for "Is Tracked as Held" is on. If you need additional information on creating a new general ledger account click here.
   
   
   
2. Navigate to the lease that has the security deposit that you want to transfer.
3. Click on the green Actions and select Add Charge. Then enter the details below and click Save:
   
   • Account - Select a clearing account. 
   • Amount - Enter the amount of the security deposit that you want to transfer.
   • Date Posted - Enter the date of the original security deposit payment you are transferring.
     
     
     
     
     
4. Next, on the same lease that has the security deposit that you want to transfer click on the green Actions button on the lease details page and select Release Deposit.
   
   
   
5. In the Release Deposit page enter the amount that you want to release/transfer from the old lease.  You will also "Pay" the charge that was created in step #2.  Click Post.
   
   
   
   

   Once the Release Deposit has been posted the security deposit is released from the old lease and is now ready to be transferred over to the new lease.

   
   
   
6. Navigate to the lease where the security deposit payment is being transferred to.  If a security deposit charge is not already created, please go ahead and create the Security Deposit charge.
   
   
7. Next, click on the green Actions button and select Add Credit. Then enter the details below and click Save:
   • Account - Select the same clearing account that was selected when creating the charge in step 2.
   • Amount - Enter the amount of the security deposit payment that you are transferring.
   • Date Posted - Enter the date of the original payment you are transferring.
   • Amount to Pay - Enter the amount of the security deposit payment that you are transferring to the unpaid security deposit charge(s) listed. 
     
     
8. Lastly, create a ledger transfer to bring the clearing accounts back to zero on both portfolios.  From the left navigation menu click on Accounting / Transactions.. Then click on the green Actions button and select New Ledger Transfer.  Enter the details below and click Submit. 
    
   • Date Posted - Enter the date of the original payment you transferred.
   • Bank Account - Choose the same bank account that the original payment settled to.
     
     • Entry #1
       
       • Ledger - Select the portfolio, property or unit of the old lease that originally held the payment.
       • Account - Select the same clearing account that was selected when creating the charge in step 2.
       • Debit - Enter the amount of the security deposit payment that you are transferring. (if account chosen above is a liability account, entering a debit will decrease the account)
     • Entry #2
       • Ledger - Select the portfolio, property or unit that the payment was moved to.
       • Account - Select the same clearing account that was selected when creating the charge in step 2.

• • • • Credit - Enter the amount of the security deposit payment that you are transferring. (if account chosen above is a liability account, entering a credit will increase the account).