How to Refund Deposits (Insured Scheme)

If your deposit is held in the custodial Scheme account please follow this article instead: How to Refund Tenants Deposits Directly Held With Custodial Scheme

1.Transferring the Deposit

Initially, the deposit needs to transfer back into the main tenant account in preparation for its return. This is created in Arthur using the ‘Add Transaction’ within the tenancy, and use transaction type Deposit Transfer to Rent Account

2. Dealing with disbursements

Ignore this step if there are no deductions to the tenant. 

In Arthur

This done through the tenancy in Arthur. Select Add Transaction and enter a disbursement charge totaling the amount of the deduction. This will decrease the amount owing to the tenant.

3. Remitting to the tenant

This is done in the ‘Close tenancy’ function within the tenancy screen in Arthur. Select “More” > “Close Tenancy”. At the point of closing the tenancy you will be prompted to enter a bank account from where the refund is coming from. You will choose the account the refund is paid out from.

4. Reconciling in Xero

Go to Xero Reconciliation page and match the refund to the spent bank transaction.