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This system is designed to reflect the legal position of a Property Owner to its tenants, and allow easy but effective control and processing of tenants deposits.

 

The banking structure anticipated by the system is at least two main separate bank accounts.  One for depositing all receipts - rental, deposits etc.(Rental Trust Account) and one for the holding of the tenants deposits (Deposit Trust Account).  The former account is also used for the payment of expenses on behalf of properties.  Any temporary or other investment should flow from these current accounts. Any variations to this will be obvious depending which structure is chosen.

 

The system supports the following structures which operate automatically based on the Deposit flag setup on the Maintain/Setup Property screen. They can all operate at the same time within one account.  Careful planning should be undertaken at the commencement of use of the system to ensure that the desired controls, efficiency levels and effects are obtained. Refer to Maintain/Setup Property

 

Flag

 

C -  Central deposit system, which implies that deposits are controlled from one central point for the whole account.  Receipts and refunds are made from the Rental Trust account, and system controlled transfers and entries move and record cash as is required between the two bank accounts. The entries are recorded on Property and Management levels.  The bank accounts are administered on Management Level.

 

CP - Deposits initially banked into or refunded from the Central Account, and system controlled transfers and relevant entries are made crediting the properties share of the Rental trust account, effectively paying the deposits to the Owner of the Property.  Refunds are made from the central account, and recovered from the Property Owner by charging his share of the Rental trust account. These refunds are password protected to ensure that refunds are not made when any risk to the Agent   has arisen.  

 

A - Agent   trust account.  The same as for 'C', except that the control will be on Agent   level.  It reflects the situation where different trust account structures operate within one account.

 

AP - As with 'CP', except that the primary flow of funds will be through the Agent   level banking system.

 

P -  Property Trust.  Where a Property maintains its own deposit Trust Account. All receipts are banked directly into that account, and all refunds made directly from it.

 

X -  Property Local Bank Account.  Where a Property receipts and refunds deposits from it's local bank account (4117).

 

Full audit trails, bank reconciliation facilities and reporting for each structure are operational within the system. Full reporting on an individual Property through to summarised reporting for a whole account is available, showing where relevant deposits are being held.

 

Individual deposit accounts are maintained for each tenant, integrating into the accounting records of the Property, and the relevant central facility.

 

Refunds are done from the relevant account, using a tailor made refund screen.  Any captured amounts due by the tenant to the  Agent  or the Property will be automatically deducted, allowing the user to specify any other deductions for future electricity, damages etc.  All accounting for these deductions is automatically put through by the system.

Refer to How do I Refund a Tenants Deposit

 

Tenants can be billed for Deposits to be paid, or any increase in deposits.  These will only be reflected as trust funds on receipt thereof, but will appear on the tenants rental statement.

 

There is a facility to credit tenants with interest on their deposits, at variable interest rates.  Refer to How do I setup and credit Interest on Tenant Deposits