Transferring a security deposit between tenants can be necessary for various reasons, such as when the primary tenant moves out, but the security deposit remains with the lease.
Changing Primary Tenant:
Navigate to the specific Unit under Properties page
Switch to the Lease tab, and then the Details sub-tab
Expand the Lease Information, and select the Primary Tenant field to edit
Steps to Transfer Security Deposit:
Original Tenant (who initially paid the deposit):
Create a Security Deposit Application:
Generate an Invoice:
Apply the Security Deposit Application to this Invoice:
New Tenant (receiving the deposit):
Create an Invoice with the Security Deposit item type.
Create a Credit Note:
Apply the Credit Note to the Invoice:
This will create a security deposit balance for the new tenant.
The pass-thru account will return to zero.
Important Note:
The bank account will still reflect the original security deposit payment from the initial tenant.
Transferring the security deposit between tenants does not affect the bank account balance.