Security Deposits

Security deposits protect landlords against damage or unpaid rent. Aqarjia tracks the full lifecycle of each deposit from collection through to refund or forfeiture.

How Deposits Work

When creating a lease, you can specify a security deposit amount. The deposit is tracked separately from regular rent payments and follows its own lifecycle.

Deposit Lifecycle

  1. Pending -- Deposit is required but not yet collected.
  2. Collected -- Payment has been received from the tenant.
  3. Held -- Deposit is being held for the duration of the lease.
  4. Partially Refunded -- Some portion has been returned to the tenant.
  5. Refunded -- Full amount returned to the tenant at lease end.
  6. Forfeited -- Deposit retained by the landlord (e.g., due to property damage or lease violation).

Collecting a Deposit

  1. Open the lease that requires a deposit.
  2. Navigate to the Deposit section.
  3. Record the deposit payment with the amount, date, and method.
  4. The deposit status changes from Pending to Collected.

Refunding a Deposit

When a lease ends and the tenant moves out:

  1. Inspect the unit for damage.
  2. Open the lease's deposit section.
  3. Choose Refund and specify:
    • Refund Amount -- Full or partial amount.
    • Deductions -- Any deductions for damage, unpaid rent, or cleaning.
    • Reason -- Explanation for any deductions.
  4. Process the refund.

In Kuwait, security deposit terms are typically governed by the lease contract. Always document the reason for any deductions clearly.

Forfeiting a Deposit

In cases where the deposit is not returned to the tenant:

  1. Open the deposit record.
  2. Choose Forfeit.
  3. Provide the reason for forfeiture.
  4. The amount is recorded as retained by the landlord.

Deposit Reports

The deposit report shows all deposits across your portfolio with their current status. This helps you track:

  • Total deposits held.
  • Upcoming refunds (leases nearing expiration).
  • Forfeiture history.

See Reports Overview for available reports.