In my state, MD, landlords must return the security deposit interest with interest.
I am encountering a problem when I appropriately categorize the Security Deposit Interest: It adds a credit to the tenant’s ledger, rather than continuing to accrue for giving to the tenant at the termination of the lease term.
@jtgpropertiesllc Good catch on the ledger. This isn’t a solution but more like a workaround. How about just recording the interest as “security deposit” the parent category?
Hope that helps a little.
-Tom
@tlatuga, thanks!
After I looked into this further, I found that whenever you label something with a certain tenant, it will automatically reflect on their ledger, which is super beneficial in most situations.
Here you can see the PINK (unassigned to a unit) is not reflected on the ledger, but the RED (assigned to unit), does show on the ledger.
What I will do moving forward is: Assign the interest to a PROPERTY, rather than to a specific tenant. This way, I can still assign it as Security Deposit Interest, but it will NOT show on the tenant ledger.
I assume this gives good flexibility for those situations such as the folks that need this to be subtracted from the tenant ledger.
