The quick read
Key points
- A refundable deposit and rent represent different records.
- Track both the money held and the obligation to the tenant.
- Check the lease, source documents and applicable requirements before applying a deposit.
Identify the payment before booking
Read the lease and payment description. A receipt may include rent and a refundable security deposit in the same transfer. Separate the components rather than assigning the entire amount to rental income. Keep the lease and payment confirmation available to explain the decision.
Keep the liability visible
Use the security-deposit transaction workflow and assign the relevant property or unit. Review the resulting bank movement and deposit liability. For a straightforward refundable deposit, receiving money increases the bank balance and the amount owed back to the tenant; it does not by itself create earned rent.
Follow later movements
A move between your bank accounts is a transfer, not another deposit received from the tenant. When returning money, use the deposit refund workflow and compare the amount with the tenant record. Check whether a payment was already entered before booking an imported withdrawal.
Document an application or adjustment
If part of a deposit is applied to another amount, keep the itemized explanation and supporting records. Ask your accountant how to record the specific arrangement. Deposit handling, notices, interest and trust-account requirements depend on the applicable rules; this guide does not establish what you may withhold.
Example to review
Illustrative bookkeeping records. Confirm the treatment of your own transactions with your accountant.
| Event | Bank change | Deposit liability change |
|---|---|---|
| Receive a $900 deposit | +$900 | +$900 |
| Return the same $900 | -$900 | -$900 |
Common questions
Will the lease record book the deposit for me?
Check booked transactions before relying on a lease field. A descriptive lease record and an accounting entry serve different purposes.
Do linked Rentari books include tenant deposits?
Tenant security deposits are outside the supported Rentari sync scope. Review the source records and enter the missing accounting activity separately, checking for duplicates first.
Keep your next step simple.
Use the product guide for the app workflow, or contact support with your question. Bookkeeping reports are not tax advice; review filing decisions with a qualified professional.