Refundable Rental Security Deposit

I’m using manager to keep track of property management expenses.

When I rent out a condo to a new tenant, they typically pay a refundable security deposit equal to one month’s rent. I am to hold onto this security deposit until they move out (maybe a year or more later), at which time I refund it (minus any damages).

I’ve set up the deposits according to this guide.

It works, but sets up the deposit as a negative balance in the customer’s account receivable. This is a problem when I create a monthy sales invoice (rent) for the tenant, because it always deducts the amount of the security deposit from the monthly rent that is due.

For example:

  • Initial Security Deposit: $2000.00
  • Monthly Rent Due: $2000.00

So the first month when the tenant moves in, he pays $4,000.00, which is the first month rent plus the security deposit. The next month, the sales invoice is set up for $2,000; however, because the tenant has a balance due to the security deposit, manager marks the 2nd month’s sales invoice as paid in full.

Is there a way to prevent this and keep track of the security deposit? I basically want the customer to have a negative account’s receivable balance in the amount of the security deposit, until they move out.

You cannot avoid that automatic allocation without putting the deposits into different account. Read this Guide: Avoid automatic credit allocations with special accounts | Manager. You will have to create a special account for every tenant. (Actually, you could simplify things for the future by making the special accounts for the property. That way, when the tenant leaves, you can reuse the special account for the next tenant. See the example in this Guide: Use special accounts | Manager .)

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Hey Tut, Your words are shear wisdom and have assisted me many times. I too am doing exactly what is spoken about here. I clicked to checkout the guide you refer to but it has a 404 page. Can you tell me where the guide that 10555 refers to. Thanks in advance,

@Jax555 the link is the same Use special accounts | Manager
the link in the previous post by @Tut included the special characters at the end by mistake which is resulting in 404 error.


Thanks, @sharpdrivetek. I corrected the link.

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