Overview

Although you can withhold or refund a lease deposit as part of the Ending a Lease wizard, you might need to do this after you already ended a lease. Perhaps you go through a move-out checklist after one of your colleagues already ended the tenant's lease. No worries, you can still withhold or refund a deposit even though the lease is now inactive.

  1. Withholding a lease deposit for an ended lease

  2. Refunding a lease deposit for an ended lease


Withholding a Lease Deposit for an Ended Lease

If you are withholding a lease deposit to pay off move-out charges, it’s best to create the charge before withholding the deposit.

Step 1

From the main menu, select Leases < Active Leases.

Step 2

Filter the leases by their Status, choosing Inactive.

Step 3

Find the lease you want to withhold a deposit for and click on it. You can either sort the list by the various columns and filters or use the Search leases search bar.

Step 4

Click on the Deposits tab and then the Withhold Deposit button.

Step 5

Enter the following information:

  • Description: enter an optional explanation for the withholding.

  • Amount to Withhold: enter the amount of the deposit to withhold. If there is more than one lease deposit, you can withhold from multiple deposits, or put $0.00 in the deposits you don't want to withhold.

  • Due Date: change the date for the withholding if needed.

  • Add note: add an optional note for your reference when reviewing the withholding later.

Step 6

Add any relevant files and click Save.

Good work! You withheld a lease deposit to pay off outstanding charges, converting the deposit money from a liability on your balance sheet to income shown on your profit and loss report.


Refunding a Lease Deposit for an Ended Lease

Step 1

From the main menu, select Leases < Active Leases.

Step 2

Filter the leases by their Status, choosing Inactive.

Step 3

Find the lease you want to refund a deposit for and click on it. You can either sort the list by the various columns and filters or use the Search leases search bar.

Step 4

Click on the Deposits tab and then the Refund Deposit button.

Step 5

Enter the following information:

  • Paid To Tenant: pick the tenant on the lease you are refunding (there might be more than one tenant on the lease.)

  • Pay From Account: choose the property bank account you are using to pay back the tenant. (This should be the same bank account holding the lease deposit.)

  • Payment method: pick among several options to remind yourself later of how you paid the tenant.

    • Choosing the Check payment method allows for entering an optional check number and the ability to print the check later.

  • Description: enter an optional explanation for the refund.

  • Amount to Refund: enter the amount of the deposit to refund. If there is more than one lease deposit, you can refund multiple deposits, or put $0.00 in the deposits you don't want to refund.

  • Due Date: change the date for the refund if needed.

  • Add note: add an optional note for your reference when reviewing the refund later.

Step 6

Add any relevant files and click Save.

Good work! You refunded a lease deposit. Now this deposit is no longer a liability on your balance sheet.

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