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.
Clicking on the deposit record itself, you can see details of what payments have been received (and when and how), as well as how those receipts were lodged into the relevant tenancy deposit scheme.
A deposit may be returned from the protection scheme in a number of ways, depending on the individual scenario and circumstances.
- Returned in full to the tenant, directly from the custodial scheme
- Returned in full to the tenant by the agency, from an insured scheme
- Returned partially to the tenant, and partially to the agency to cover arrears
- Returned fully to the agency to settle outstanding rent, charges or damages
- Click through on the deposit in question, either from the relevant tenancy or the protected deposits report.
- Click the Return Deposit button to start the return process.
- Specify the return date, who the deposit is being returned to (more details below), and the value being returned. The return may be processed in several stages, and to different recipients.
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. It may also be returned directly to the landlord, independent of the agency. In both cases, the money will not pass through the client account and the return is purely for tracking purposes.
If the deposit is returned to the tenant or landlord directly by the scheme, then choose the appropriate option from the Returned To menu.
If the deposit is needed to cover outstanding rent or damages and the money is ultimately due to the landlord, you will need to record the return to the Agency first (see below).
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. This will reflect as a payment out from the account.
- If some or all of the deposit is required to cover outstanding rent arrears, unpaid charges, or to cover the expense of damages, you will need to record the return to the Agency.
- This will be reflected as a credit on the tenant's account, from where it may be allocated to pay rent or charges.
- Each return (there may be one or several) will be listed in the What Payments Have Been Returned section of the deposit overview.
- If the tenant owes money to cover damages, you should create an expense recharged from the landlord to the tenant, and then allocate the deposit to that charge in order to pass the money to the landlord.
- To allocate the deposit return to rent or charges, click the tenant's credit balance from the overview page, or via the tenant view go to Financial > List Credits.
- Then click Allocate Credit, and allocate the relevant balance to the appropriate charges.
If a supplier must be paid in relation to damages, then raise a job to the property and use the credit on the landlord (property) account as a result of this final step to pay that job.
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.
Undoing (deleting) a deposit return
If a deposit has been recorded as returned in error, then click the deposit in question and in the What Payments Have Been Returned section you will see a list of returns.
Click Delete to undo that return.
Obviously, this can only be done provided that the return has not been already allocated to rent or charges. If that is the case, then those payments will need to be removed in turn to allow the deletion of the return itself.