Return security deposit

You can view all protected security deposits via the Accounting > Security Deposits menu in the Lettings module menu. Change the filter to show Protected deposits.

You can also view details of the deposit relating to a particular tenancy from the tenancy overview, either on the overview screen, or via Rent & Charges > Security Deposits menu.

Return a deposit to the tenant

When returning the deposit, you can specify to whom the deposit return is being made.

If the deposit is held in a custodial deposit protection scheme, any return to the tenant will typically be made directly to the tenant, independent of the agency. 

If the deposit is held in an insured scheme within the agency, the deposit return will need to be processed from the agency's client or deposit bank account back to the tenant.

Use the deposit to pay rent arrears and charges

A deposit will not simply be returned straight to the landlord for no apparent reason. It will be due to the landlord in relation to outstanding rent, expenses, damages, or  a charge relating to an agreed penalty. If it does not relate to rent or charges, then create an expense recharged from the landlord to the tenant, and allocate the deposit to that charge to pass the money to the landlord.

If the tenant has absconded with rent arrears or has caused damages, the money can be returned to the agency, where it will be placed onto the tenant's account balance as a credit. That credit can then be used in the same way as an overpayment to cover outstanding rent or charges.

Click the credit in question via the tenant view, Financial > List Credits. Then click Allocate Credit, and allocate the relevant balance to the appropriate charges.

The deposit should only be returned to the tenant's ledger within the agency if the deposit protection scheme has agreed that this money can be used to cover the expenses or arrears. Until that agreement has been provided the money must remain protected within the scheme or the agency's designated deposit or client account.