There are two types of payments that are commonly referred to as Security Deposits, and it's important to distinguish them:
- A payment made at the start of the lease which is held untouched for the entire life of the lease (as long as rent is paid appropriately), and returned after the end of the lease, if there are no extra charges. Currently, EZLease does not have a specific provision for this type of deposit. As a workaround, users can store this information is one of the User-defined fields; however, it will not affect accounting or appear in journal entries. We hope to add this functionality in a future release.
- A payment made at the start of the lease which will be used for the final month of rent (or earlier, if the lessee doesn't pay on time). This is considered a prepaid rent payment, and it should be treated as a rent payment made on the first day of the lease. In EZLease, what you would show in the rent table is the first month rent of 2x (e.g. normal rent plus the prepaid rent), then regular rent from the second month through the next to last month, then $0 rent for the final month.