How do I record a refund for a security deposit?

When a tenant pays their security deposit, it is important that any costs such as damages, additional cleaning of the property, or unpaid rent are deducted and the remaining deposit is returned to the tenant. Properly logging this security deposit ensures that all records in your accounting are reported.

How to record a security deposit refund

1. Click on Accounting in the left menu
2. Click on the Transactions tab
3. Click Add and select Security Refund
4. Fill in the required fields
5. Click SaveNote: In order for a security deposit refund to be created, there are a couple of parameters that must be met: a lease must already be created with the tenant listed on it, and the security deposit transaction must exist in your accounting and be marked as paid.

Once the security refund transaction has been created, be sure to mark it as paid once the refund has been given! If you need help on manually recording payments, check out this article.

Partial Refunds

To partially refund a Security Deposit, create an expense transaction and link it to the Security Deposit.
Here are the steps:
Go to Accounting > Transactions > Add > Expense.

 
Fill out the relevant fields to ensure it ties to the correct user.

 
For the "Account Name," select "Security Deposit" as this will prompt you to establish the connection between the expense and the lease.


 

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