Most tenancies typically require a deposit to be paid at the outset to be held as security against damages or unpaid rent or charges at the end of the tenancy. Security deposits must be adequately protected in recognised tenancy deposit protection schemes.
- When creating a new tenancy, you can complete the Security Deposit field in the Tenancy Details section, which will create a security deposit record relating to that tenancy.
- If you haven't specified the deposit due during the tenancy creation stage, you can do so afterwards via the Rent & Charges > Security Deposits menu.
Click Add Deposit Due, and provide details of the deposit total. The deposit will be due on the tenancy start date, or immediately if the tenancy starts in the future.
- The deposit due will then show on the tenancy overview screen along details of any payments received towards it. Click the deposit totals to view a full breakdown of the deposit.
Deposits on tenancies which started before your conversion date
If the tenancy started prior to your account's conversion date, the date you started to use Elevate, the system will not apply this automatically since it assumes that this has already been taken care of.
However, in order to later process the deposit return you should add the deposit due manually (see above), and then protect it so that you can see where it is held. You can later return the deposit.
Note that this may affect your opening balances.
- If you receive the deposit payment from the tenant and then lodge it to a custodial scheme, then the payment in and out will balance each other and won't affect the overall balance. However, both transactions will need to be reconciled.
- If the deposit is held by the agency, either in an insured scheme or if it is sitting temporarily in the client account awaiting lodgement to a custodial scheme, then it will be reflected in your opening balance. The receipt will also need to be reconciled.
Deleting a deposit due
If a deposit has been charged to the tenant in error, you can remove it by clicking through to the deposit record (either from the tenancy, or the Accounting > Security Deposits report), and choosing Options > Delete.
The deposit may only be deleted provided that it has not had payments received against it.