Deposits, deductions and settlement
The deposit is held on a liability account, taken in one go or in parts. At move-out, deductions are proposed from the check. The tenant agrees or disputes each line online. Settle Deposit keeps what is agreed and refunds the rest.
PLANSEvery plan
The problem it solves
- Deposits sit in the operating account and are spent before the tenant leaves.
- Deductions are argued over email for weeks with no record of who agreed to what.
- The refund is worked out on a calculator and paid twice.
How it works
- Confirm the lease: a deposit is asked, the monthly rent times the deposit months.
- Record it as it comes (Take, Top Up), by bank, cash, cheque or online; it is held on the deposit account of the Entity.
- After the move-out check, deductions are proposed: new damage at its estimated cost, missing items at their value. Add others: cleaning, unpaid rent, unpaid bills, keys, other.
- The tenant opens Deposit Deductions on their web page and agrees or disputes each line, with a comment.
- Mark lines Agreed, Disputed or Drop as you settle them, or propose them again.
- Settle Deposit (Lease Manager): the wizard shows what is held, what is kept and what goes back, and the bank to refund through. Settle.
Everything it does
The deposit
- Asked amount, held amount, states To Take, Held, Settled
- Movements: Taken, Topped Up, Used, Refunded, each with its payment or entry
- Held on the Entity's deposit account (a liability) through the deposit journal
- Take, Top Up, Use and Refund on the deposit; Ask Online for a pay link
Deductions
- Kinds: Damage, Cleaning, Missing Item, Unpaid Rent, Unpaid Bills, Keys / Cards, Other
- What, amount, wear-and-tear note, evidence photo, the tenant's answer
- States: Proposed, Agreed, Disputed, Dropped, Settled
- Agree, Dispute, Drop, Propose Again
Settlement
- Deposit held, Kept (agreed deductions, never more than held), Back to the Tenant
- Settle Without Them: settle now and drop the lines not agreed
- Refund Through: a bank or cash journal
- Kept money is moved to the tenant's account, where it pays what they owe; the rest is refunded
Tenant page
- Deposit Deductions: each line with Agree or Dispute; a dispute needs a reason
Who uses it
Lease ManagerSettles deposits.
Lease userTakes deposits and checks proposed deductions.
TenantAgrees or disputes each deduction online.
AccountsSees deposits on the liability account and the refund payment.
Where you use it
- Web: Settle Deposit on the lease, and Lease > Operations > Checks and Upkeep > Deposit Deductions. Deposits are under Rentals > Billing > Deposits and Credits > Deposits (Lease > Billing > Deposits and Owners > Deposits comes with deposit protection)
- Tenant web page: Deposit Deductions with Agree or Dispute, and the deposit held on the lease
What you control
Settings
- Deposit months: per lease, 0 to start with
- Deposit account and journal: per Entity in the settings
Notifications
- No message of its own when deductions are proposed or settled; the tenant sees them on their page
Questions
Is the deposit kept apart from rent?
Yes. It is held on the deposit account of the Entity, a liability, and every movement has its own payment or entry.Can the tenant argue a deduction?
Yes. Each line has Agree and Dispute on the tenant's page; a dispute needs a reason. You see the answer on the line.Do we have to wait for every line to be agreed?
No. Tick Settle Without Them to settle the agreed lines now; the others are dropped.Does a deduction make a bill?
Kept money goes to the tenant's account to pay what they owe, such as unpaid rent or a damage charge. Where nothing is billed for the deduction, raise a bill or charge for it so the kept money is used.Related features
CHECKS, DEPOSITS AND REPAIRSMove-in, move-out and inspection checks with photos and signaturesWalk the unit at move-in, move-out and in between with a check. Check points are cards answered with one tap. The check takes photos, meter readings, the item list, keys and damage. Your staff sign first and the tenant signs last. The tenant gets the PDF; new damage at move-out becomes proposed deposit deductions.CHECKS, DEPOSITS AND REPAIRSDeposit protection schemes and their deadlinesWhere the law asks for a deposit to be protected, such as UK schemes and Australian bond authorities, each deposit carries its scheme. It also carries the day to protect it by and the day to send the tenant's information by. The property manager is reminded before each deadline.CHECKS, DEPOSITS AND REPAIRSMake-ready tasks before the next tenantWhen a tenant moves out, your list of tasks between tenants is made for the unit: paint, deep clean, change locks. The unit shows Not Ready until the last task is done, then it is Vacant again.LEASES AND RENTLump-sum leases: bhogya, otti and jeonseSome tenants pay one large sum instead of rent and get it back at the end. The sum is held as a deposit. It can come in parts and is returned at the end. You are reminded 90, 30 and 7 days before it falls due.LEASES AND RENTRent paid online through pay linksTenants pay their rent bills online through your own payment provider, from their web page or the app. You can also send a pay link for any amount, take a deposit online, or charge a saved card or mandate on each bill.
See your buildings on it.
Tell us how many properties and units you have, whether you let your own or manage for owners, and how rent is paid today. We will set up your portfolio with you on SmartMy Lease.