Hemlane allows you to refund a tenant for a variety of needs. The most commonly refunded payments are security deposits made during move-in. Security deposits allow the owner to hold funds in case of damage, neglect, or non-payment, and are returned to the tenant after move-out with any necessary deductions for cleaning, repairs, or lease violations.
Common Types of Deposits
- Security deposit
- Cleaning deposit
- Pet deposit
- Holding deposit
Please note that if you collect a separate pet deposit, you must be able to prove that the pet caused the damage in order to make deductions from it. To avoid this, many owners combine the pet deposit into the security deposit so that justifying the cause of damage is not required.
Each state has different security deposit return laws. Please visit our State Laws page to see the requirements for your state.
To Reimburse a Tenant
Step 1: Select the Financials tab from the left-hand main menu.
Step 2: Click [Send Money] to initiate a payment through Hemlane using an attached bank account or credit card.
Step 3: Follow the steps to fill in the payment details. The form includes:
- Property address and unit if applicable
- Payor’s details - who will send the payment and which bank account it will be sent from
- Payee’s details - who will receive the payment and which bank account it will deposit into
- Payment details - amount, category, and due date
- Payment options - allowing partial payments, credit and debit card payments, and late fees if applicable
Tip: There is a memo area in the form where you can document any deductions that were made before the refund was issued.
Step 4: Confirm the payment details and click Send.
The tenant will then receive a notification to accept the refund and will be asked to select which bank account they would like it deposited into from the accounts connected within their Hemlane account.
Common Questions
How can I reimburse multiple tenants?
Owners can disperse the entire deposit to one tenant for distribution, or create individual returns for each tenant based on their portion. Most landlords perform an even distribution or a percentage-based return based on how the deposit was originally paid.
What if the tenant’s bank account is not connected to Hemlane?
Tenants can accept the return to any bank account connected within Hemlane. They can also connect a new account at the time of the refund and choose to receive the funds there.
As a property manager, why am I unable to return the security deposit?
A refund can only be sent from bank accounts associated with your own Hemlane account. If you are an admin for a property and the funds need to come from someone else’s account, that person must initiate the refund. For security purposes, Hemlane does not allow funds to be transferred out of an account that is not your own.
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