Note that this article refers to security deposits held by the agency under an insurance based protection scheme.
In the event of a tenant vacating a property and leaving with rent arrears, the deposit may be returned to the landlord instead of the tenant.
- Select Bank -> Tenant Transactions from the main menu
- Identify the relevant Property and, if required, the appropriate Tenant.
- Select the Payments (Outgoing) tab.
- Choose a type of 'Return of Security Deposit'
- For the Bank Account select a Suspense (or dummy) account as the funds will not be actually returned to the tenant. The process for creating a new bank account is detailed here.
- The Payment Medium should be set to 'Other'.
- Enter a Description of 'Funds retained due to rent arrears', or similar
- Complete the remaining transaction details and submit
We now need to credit the landlord balance of the associated property. This can be achieved by by recording a rent receipt in the usual fashion, but again specify the Suspense (or dummy) Bank Account and set the Payment Medium to 'Other'.