AppFolio Tutorials - Ep. 14 Security Deposit Refunds Full Refund

Hello everyone, and welcome back to APM Academy. In this video, we’re going to show you how to fully refund a tenant’s security deposit, using both standard move-out workflows and early refunds.

Full Security Deposit Refund

In most cases, a full refund occurs during the tenant move-out process.

Scenario: Tenant “Thorn Oak Shield”

Step 1 – Start Move-Out

1. Select the task on the right-hand side → Move Out Tenants.
2. Set the move-out date (e.g., a future date) and click Save.

Step 2 – Charges & Credits

1. Scroll down to Charges and Credits.
2. If there are any damages, enter them here (in this example, there are none, so the tenant qualifies for a full refund).

Step 3 – Security Deposit Transfer

• Two Bank / Two Cash Setup:
  • Option 1: Refund via Bill & Receipt – generates a check or bill you print and deposit.
  • Option 2: Refund via Bank Transfer – move the deposit between bank accounts efficiently.
• One Bank / One Cash Setup:
  • No transfer is needed; the system handles it automatically.

Step 4 – Post Accounting

1. Click Post Accounting.
2. Unlike partial refunds, you do not need to manually post charges and credits – the system handles everything during the move-out workflow.

Step 5 – Issue Payment

1. Refund the tenant using Pay Bill Now.
2. Options:
   • Check – print and mail the check.
   • Other Payment – e.g., Venmo, Zelle, or online payment.
3. Set the payment date to the date the refund is issued.

Step 6 – Finalize Move-Out

1. Download the disposition letter for your records.
2. Click Finish Move Out to complete the move-out workflow.

Once finalized, the unit will show as available to rent and you can begin marketing campaigns.

Summary

• Partial Refunds: Manually enter charges and credits, then post accounting.
• Full Refunds (Move-Out): System posts everything automatically; just issue payment and finalize.
• Always check the unit availability and download disposition letters for proper documentation.

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