If you're passing a deposit to a landlord then it should be recorded in a slightly different way than normal:
First we need to specify that a deposit is due from the tenant:
- From the main menu select Bank -> Tenant Transactions
- Identify the Property / Tenant
- Ensure the Credits tab is selected
- Specify the security deposit due from the tenant as a NEGATIVE value
- Enter an appropriate description, e.g. 'Security deposit due'
- Adjust the date if necessary and submit
Do NOT select the option to override management fees (if available).
Next we want to record the receipt of the security deposit payment from the tenant:
- From the main menu select Bank -> Tenant Transactions
- Identify the Property / Tenant
- Ensure the Receipts tab is selected
- Select a payment type of 'Tenant Payment' rather than Security Deposit
- Enter an appropriate description, e.g. 'Security deposit received (to be passed to landlord)'
- Complete the remaining details and submit
If your management fees are calculated as a percentage of rents collected then balancing management fees will be applied by both steps detailed above, i.e. the net charge to the landlord will be zero.
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