Propertyware Knowledge Base :: When roommates move out simultaneously, how do I refund their security deposit?

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When roommates move out simultaneously, how do I refund their security deposit?

When all co-tenants on a lease (i.e., roommates) move out at the same time, you may refund their portions of the security deposit in either one of two ways:

Your first option is to create one refund check for both roommates. To do so, simply click the Move-Out button on the tenant ledger and follow the move-out process. The move-out process will terminate the lease for both tenants and create one check refunding their security deposit. For step-by-step instructions on how to perform a move-out calculation, please visit the help topic for the move out calculation.
Your second option is to create separate refund checks for each roommate. To do so, you will first need to follow the below instructions (steps 1-7) for each secondary tenant on the lease. Next, perform the move-out calculation for the primary tenant. A primary tenant is the tenant who is listed as a primary contact on the lease; all other tenants are considered secondary tenants.

To refund each secondary tenant their portion of the security deposit, perform the following steps for each:

1. Find the subject lease by using Search or using the Lease Navigator from the Lease tab.

2. Once you have selected the appropriate lease, click on the Tenant Ledger button from the subnavigation bar located below the application's various tabs.

3. Then click on the "Refund, Discount, Adjustment" button located in the middle of the page.

4. From the "Refund, Discount or Adjustment" pop-up window, select the radio button next to "Refund." The window will then refresh to display the following fields, which you must complete and then click Save:

Pay From - select the bank account from which you wish to pay the security deposit.
Ref # - select a reference number for this transaction, which will serve to identify the refund transaction.
To Be Printed - select this checkbox if you wish to print this check.
Security Deposit Refund - select the type of refund to be issued, which in this instance, is a Security Deposit Refund.
Amount - enter only the portion of the security deposit to be refunded to the tenant.
Date - enter the date the refund is to be issued.
Comments - enter any comments describing the transaction at handi(i.e., "this is a partial security deposit refund issued to departing co-tenant Smith.")

5.Once you click Save, the security deposit refund will be issued from the security deposit account (SECDEP) for that lease. Repeat these steps for each additional secondary tenant.

6. Note that once you transfer the refund to QuickBooks, the refund check will appear in the name of the lease. You will need to re-address this check in QuickBooks so that it is "paid to the order of" the departing tenant.

Remember: to repeat these steps for each additional secondary tenant. When finished with secondary tenants, be sure to terminate the lease by processing a tenant move out on the one remaining tenant.