Security Deposit

Security deposits are a special charge type in Rentables. (See How to record a charge). They get special treatment due to the fact that they are refundable. Our accounting system keeps track of the security deposit amount, how much has been paid by the tenant, how much has been forfeited, and whether your are holding the funds or the owner is.

You can see in the screenshot below that the tenant has a $4,400 security deposit and that the whole amount is being held in trust (not by the owner).

Owner Reserves

It's common practice for property managers to hold some funds for the owner to cover small repairs on incidental expenses. Like security deposits, these are a special charge type in Rentables.

Required Reserve vs Optional Reserve

Rentables supports creating reserves in two flavors. One is a Required Reserve. This is created using a Reserve charge. It looks very similar to an expense and shows as unpaid whenever the balance in below the specified amount. If you use some of the reserves it will again appear as unpaid and you can deduct funds from next month's rent and apply them to the reserve.

An Optional Reserve is created by transferring owner cash to a reserve account. You can transfer funds in and out of the reserve account as necessary.

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