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AppFolio

How to close out a lease only property in AppFolio

By
December 9, 2021
1 min read
How to close out a lease only property in AppFolio

AppFolio user question:

I need to close out a lease only property. I followed the instructions as to posting the tenants charges and payment. The security was charged to a liability account as instructed. I created a "owner held deposit" account and this is the g/l I used to charge the tenant. I issued check to owner and moved out tenant. When I looked at my Balance sheet I see the money still in the liability account.

APM Help answer:

All you are doing is collecting the security Deposit you will still need to do a normal move out. So on the tenant ledger you will enter a charge to the Clearing Account for the SD and then a credit from Owner Held Deposit paying it off in full. Then the bill to pay the funds to the owner the GL account will be the clearing account.

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Question

How to close out a lease only property in AppFolio

AppFolio user question:

I need to close out a lease only property. I followed the instructions as to posting the tenants charges and payment. The security was charged to a liability account as instructed. I created a "owner held deposit" account and this is the g/l I used to charge the tenant. I issued check to owner and moved out tenant. When I looked at my Balance sheet I see the money still in the liability account.

APM Help answer:

All you are doing is collecting the security Deposit you will still need to do a normal move out. So on the tenant ledger you will enter a charge to the Clearing Account for the SD and then a credit from Owner Held Deposit paying it off in full. Then the bill to pay the funds to the owner the GL account will be the clearing account.

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