Logging Deposit in Landlord Studio
Step 1. Navigate to the relevant property via the left-hand menu bar. You can open this on the app by tapping on the hamburger menu on the top left of the screen.
Step 2. Tap on the ‘Log Payment’ button. This will allow you to record an income amount.
Step 3. Enter the deposit amount, and set the payment type as "deposit".
Make a note of the security trust you have placed the deposit in the notes section of the payment.
Step 4: Hit Save.
Returning a Deposit
Step 1: Work out the amount that needs to be returned. (Deposit amount minus costs of damages deducted from deposit).
Step 2: Hit the “Log Payment” button on the property dashboard and enter a negative amount for the amount of deposit being returned.
If the deposit was $1000 you would log a payment of $1000 with a payment type of deposit.
When returning it you would log a payment of -$1000 in the same place.
However, if the tenant was responsible for damage to the property above and beyond normal wear and tear you can subtract the expense for those damages from the deposit. For example, if there was $250 worth of damage you would log -$750 in the system.
It is worth making a note here for reference to the itemized damages deducted for this expense.
There are several alternative methods that our users use. The key thing to remember is that you need your expenses for damages to reflect the “income” collected from the deposit.
First, you can log a negative payment returning the full amount of the deposit and then log the deducted amount as income from the tenant for the amount of the damages.
You will need to create a new income category in the settings called something like: 'Damages'.
Second, you can log the deposit amount that you are keeping as an expense marked payable by the tenant. This allows you to add notes on individual expenses detailing and itemizing the damages.
Changing Dashboard and Report Filters
After you log a payment you may want to change the filters on your dashboard and reports so that they don’t log the deposit as income.
Step 1: Go to your account dashboard and click on the Category Filters on the top left of the screen.
Step 2: Unselect ‘Deposit’.
Step 3: Navigate to reports.
Step 4: Tap on Category Filters and again deselect ‘Deposit’.
You can make a note of the deposit scheme reference in your lease details by either editing the current lease or when you create your lease details.