Dealing with LMR and Security Deposits

If you are holding the LMR/SD:

• You should not enter it in the LMR box as it does not post to the GL.
• You should instead use the New Transaction button to choose Charge LMR for the Deposit amount. (The LMR box will autofill using the number you enter.)
• When the tenant pays, select New Transaction | Rent Paid (or Paid - Auto Assign) and enter whatever they pay you (even if it is more than the charge)

If you are not holding on to the Deposit:

If you want this amount to show on the Owner Statement:

• You should use the New Transaction button to choose Rent Charge and enter the full LMR/SD charge amount
• (See below re entering the SD in the LMR box as it does not post to the GL.)
• When they pay, select Rent Paid and enter whatever they pay you (even if it is more than the charge)

If you do not want this amount to show on the Owner Statement:

Simply hand the cheque over to your client/Owner (i.e. do not post it through your Trust account)

A note about Interest

Holding LMR or Security Deposits will require your Trust to pay out the interest on behalf of the Owner. The same is true if there is an agreement with your client/Owner to pay on behalf of them. ManageUDA will automatically calculate the correct Provincial interest if you have an amount in the LMR box. You can enter the original LMR/SD amount manually (in the Tenant Editor screen) for the system to calculate interest without those numbers ever touching the GL. This would then be the preferred method for a situation where you return the LMR/SD to the Owner immediately upon Tenant Move-in, and will be expensing the interest upon move-out.

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