Your tenant has left and you have used some of the deposit to cover either the final rent or some expenses incurred in getting the property ready for the next tenancy. This guide covers how to record this in Landlord Vision. Firstly head to Tenant Manager > Tenancies > Click on the tenancy and select the Deposit Scheme tab.
Retaining the Deposit
Firstly we need to retain the deposit. When a deposit has been marked as Protected, two options come up. Deposit Returned to Tenant and Deposit Retained.
Deposit Returned to Tenant allows you to record how much of the deposit was returned. If the deposit was £500 and you kept £300 and returned £200, you would enter that £200 had been returned to the tenant and the rest had been retained.
Deposit Retained allows you to record that all of the deposit has been held. Simply tick the box and the system will show that the whole of the deposit has been retained.
Whichever method you choose, the amount retained will appear as a credit note and will be available for using either for rent or for covering expenses.
Paying Rent with the Deposit
Click on either of the links for the credit note in the Deposit. They are highlighted in blue in the image above. Once you have pressed Save, the View Credit Note screen comes up. Press Allocate Credit and assign the money to the relevant rental invoice.
Paying Expenses with the Deposit
If the deposit has been retained for paying off expenses, you will need to create a tenant charge as well as an expense. Firstly, the tenant charge:
Go to Tenant Manager > Invoices > Add Tenant Charge and record a charge equal to the amount you have held from the deposit.
Open up the Credit Note that the software raised when you tick Deposit Retained above, click Allocate Credit and assign the credit to the tenant charge. This will move the retained deposit into income with which you can pay off an expenses.
Now go to Property Manager > Expenses and record the expense as per this guide.
If the Deposit came via a Letting Agent
In this instance just record the receipt of rent to an agent statement and record any expenses that there taken off.
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