Security deposits: tracking, deductions, and refunds
Deposits are tracked per tenancy as a liability — held, not income. At move-out, record deductions with reasons and refund the remainder; the tenant sees the accounting in their portal.
Deposits get their own tracking because they're not income — they're the tenant's money you're holding, and reports treat them that way (a deposit never inflates your revenue or an owner's rent).
During the tenancy
When a booking is created (or an applicant moves to tenant), the required deposit from the lease terms opens a deposit record: required, received, held. The deposit charge sits on the ledger like any charge, and the tracking shows at a glance whether it's been collected.
At move-out
On the tenant's deposit panel:
- Record deductions — amount and reason (damages, cleaning, unpaid balance), each logged as its own line.
- Refund the remainder — record the returned amount and the deposit closes out.
The tenant sees the same breakdown in their portal, which heads off most disputes: the accounting is itemized in front of them rather than summarized in a letter.
Common questions
- Can a deposit cover unpaid rent? Record it as a deduction with that reason at move-out. Mid-lease, rent and deposit stay separate — allocation never raids the deposit.
- State rules on timing and interest vary; Nexxus records the accounting, but your jurisdiction's deadlines and notice requirements are on you.
- Autopay never touches deposits — it charges monthly rent only.
- Deposit history is part of a booking's financial record — it's one of the things that blocks a booking delete once real money exists.
Related guides
How the tenant ledger works
Every tenant has one ledger: charges (rent, fees, deposits) and payments, each with a due date. Payments allocate to the oldest due charge first, and the balance is always charges minus payments.
Deleting properties and bookings — and why some deletes are blocked
Deletes are allowed only when no real money is attached. For a property you've stopped managing, use "No longer managed" instead — history stays, capacity ends.