The article has been updated successfully.Situation this applies to: An
applicant pays a security deposit to hold a unit and cancels after the 72-hour “cooling-off”
period and you decide to retain the security deposit.
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Scenario Jennifer
James is interested in renting a unit from you. She pays $500 in security deposit. Jennifer is approved so you create a Draft
Lease in Propertyware and record the security deposit charge and payment to
her tenant ledger. Jennifer
notifies you that she wants to cancel.
Since your company has a policy of keeping any security deposits if
cancellations are done after 72 hours, you indicate on her tenant ledger that
the deposit has been forfeit. |
Below are
the steps that explain how to forfeit a security deposit.
1.
Terminate
the lease. This is done by editing the Lease
Summary page and changing the Status of the lease to Terminated.
2. On the tenant ledger, create a
charge to Security Deposit Forfeit for
the full amount of the security deposit to be forfeit. (In this example, that would be $500.)
3. Click Move Out. On the Move Out page:
a. Select an appropriate “Reason for
Leaving.”
b. In the Security Deposit Refund section, verify “SECDEP Remaining” is $0.00
(this confirms that the entire deposit is being forfeit).
c. If checked, de-select To be Printed since no money is being refunded
to tenant.
d. Enter a “Vacated Date” which should
be the date the forfeit is being processed. (Note:
The “Vacated Date” cannot be before the Move In Date.)
e. Click Save.
4. The tenant ledger should now show
$0.00 Balance and $0.00 for Deposit Held.
