Hello. I had a tenant move out and their security deposit was transfered over to be used for repairs and missing rent. At that point I assume I the SD is treated as income. Should I change the category of that transaction from Security Deposit to income so it shows up on reporting? Or should I copy the transaction? Any recommendations on how to account for this in Stessa?
You’ll need to record a few transactions for best clarity:
- Record security deposit received from tenant (you did this when they moved in)
- Record return of security deposit to tenant (opposite direction of #1, it was their money and you’re returning it, on paper).
- Record the money as Income > Tenant Pass-throughs for repairs and Income > Rent for missing rent. They are paying you for those items accordingly.
Tom
www.realcentsorganized .com