How do you process Security Deposit Refunds for damages, default rent, etc.? Then it needs to be transferred to operating account.
- posted
18 years ago
QB2004Pro Security Deposit Refunds
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- posted
18 years ago
When a tenant notifies my client that he/she is moving I do the following:
I create a vendor with the tenants name and forwarding address. The "bill" for the tenant (vendor) is the sum of the security deposit (I keep a current liability for all secirity deposits), interest on the deposit (interset expense) less any repair or cleaning items (expense). the net amount is due x days after the end of the lease.
This puts all the charges in their place and when we pay a cleaning service etc they offset the tenant's "payment". After the final check is cut we make the tenant (vendor and customer) inactive.
Bottom line we have an entry for tenant security deposit interest and all the expenses go to the proper place and are offset by the matching worker bee expense.