financialv1.0

Security Deposit: Receive → Hold → Refund

Security Deposits

Record deposit receipt, track as liability, apply deductions at move-out, calculate net refund, process payment.

Property ManagerAccountantTenant

⚡ Trigger: Lease signed, deposit payment received

Receive Deposit Payment

Tenant pays the security deposit prior to move-in.

Role: Property Manager / AccountantTrigger: Lease signingAction: Payment received and deposited to trust accountOutput: Deposit recorded as liability

Tenant: Deposit receipt

Record as Liability

Deposit is posted to the Security Deposit Liability account. This amount is owed back to the tenant.

Role: AccountantTrigger: Deposit receivedAction: Journal entry: DR Trust Bank / CR Security Deposit Liability

Hold During Tenancy

Deposit is held in trust for the duration of the tenancy. No disbursements without authorization.

Role: System / AccountantTrigger: Tenancy activeAction: Deposit maintained in trust ledger

Move-Out Inspection Completed

Move-out inspection is completed and damage assessed.

Role: InspectorTrigger: Tenant vacatesAction: Damage items identified and documented

Any Deductions?

Decision

Are there chargeable damages beyond normal wear and tear?

Role: Property ManagerTrigger: Inspection completeAction: Review damage list

✅ Yes → Step 6 - Apply Deductions❌ No → Step 7 - Full Refund

Apply Deductions

Enter deduction amounts for each chargeable item. Calculate net refund.

Role: Property Manager / AccountantTrigger: Damages confirmedAction: Deductions posted, net refund calculated

Tenant: Itemized deduction notice

Process Refund

Issue net refund to tenant within the required legislative timeframe.

Role: AccountantTrigger: Deductions finalized or no deductionsAction: Refund payment processed, trust account updated

Tenant: Refund sent