Propertyware Knowledge Base :: If a new roommate replaces an existing one, how do I record the security deposits?

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If a new roommate replaces an existing one, how do I record the security deposits?

If a new roommate replaces an existing one before the end of the lease, you will first need to refund the departing roommate his/her portion of the security deposit. Next, you will need to record a new security deposit charge for the new roommate by creating a one-time charge. Once the security deposit is received from the new roommate, you will need to record the payment and apply it toward the security deposit charge.

First, to refund the departing roommate's security deposit:

Find the subject lease by using Search, or using the Lease Navigator on the Leases tab.
Once you have selected the appropriate lease, click on the Tenant Ledger button from the subnavigation bar located below the application's various tabs.
Then click on the Refund, Discount, Adjustment button located in the middle of the page.
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 transaction.
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 departing roommate.
Date - enter the date the refund is to be issued.
Comments - enter any comments describing the transaction at hand, i.e., "this is a partial security deposit refund issued to departing co-tenant Smith."

Once you click Save, the security deposit refund will be issued from the security deposit account (SECDEP) for that lease.

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 roommate.

Second, record a new security deposit charge for the new roommate. This is done by creating one-time charge, and recording the payment once it is received. Click the links below for detailed help topics on these two steps.