In Rentvine, deposits play an important role in managing lease agreements, tenant accountability, and property financials. This article will walk you through the different deposit types available in Rentvine.
How to Create a Chart of Accounts and Choose the Deposit Type
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When creating a Chart of Account for any type of deposit, it’s important to select “Liability” as the account type. If a different account type is selected, you will not be able to designate the account for deposit tracking.
Once you’ve selected Liability, you’ll see a toggle labeled “Use for Security Deposit Tracking.” Be sure to turn this toggle on — this is what enables the system to treat the account as a deposit-holding account.
After enabling that toggle, a new field will appear called “Deposit Type.” This allows you to specify what type of deposit the account will track (e.g., Security Deposit, Pet Deposit, Cleaning Deposit, etc.).
Different Types of Deposits
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General Deposit – Held to cover potential damage or unpaid rent.
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Pet Deposit – Additional deposit for potential pet-related damage.
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Cleaning Deposit – Intended to cover professional cleaning after move-out.
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Key/Fob Deposit – Covers the cost of lost or unreturned keys or fobs.
- Other - This could be for things not listed.
- Now, when creating a Rentsign document, you’ll be able to insert hot fields that automatically populate with the deposit information based on what was entered in the lease. This helps streamline the lease creation process and ensures accuracy without the need for manual entry.
Why Properly Tracking Deposits Matters
Accurate tracking of deposits in Rentvine is essential for both financial clarity and legal compliance. Here's why:
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Clear Accounting for Owners & Tenants
Each deposit represents money that must be held separately and reported correctly. -
Prevents Misuse of Funds
Deposits are liabilities, not income, and must be tracked accordingly. Mixing them with operating income can result in compliance issues and misreporting, which could create problems during audits or owner disputes. -
Smooth Move-Out Process
At the end of a lease, knowing exactly which funds are available to apply to damages, unpaid rent, or to refund to the tenant saves time and avoids confusion. Misclassified deposits can lead to delays or errors in issuing refunds.