Security Deposit Interest Erroneously Applies to Tenant Ledger

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.


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@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.