Last Month Rent (LMR) is the rent collected at the begging of the tenancy to cover the last month’s rent. This is sort of a security deposit. Many Canadian provinces allow deposits instead. In Mi Property Portal, LMR and Security Deposit are considered the same. There are two different ways to log LMR or rent deposit amounts.
- During tenant creation: In step 4 (Rent), you get the option “Is Rent Deposit’ required?“. If the answer is Yes, you get to enter the amount. Enter the date if you have collected the deposit, Or leave it blank if it will be collected later on. Choose if you want to give this amount to the owner or want to hold it. If you select ‘Owner‘, the security deposit amount will show up in the ‘Rent & Disbursement‘ report with the assumption that it will be given to the owner. However, there will be scenarios where you do not want to show this amount in the owner report.
When should I exclude LMR or security deposit from the ‘Rent & Disbursement Report?
For example, you got a new owner who already has collected LMR from the tenant. However, as you are going to manage his/her property, you need to record in the system that the tenant has given LMR. Now, when you log LMR or ‘Rent Deposit‘ and choose ‘Owner‘ as the deposit holder, the system thinks that you have collected the LMR or deposit and will give it to the owner. This will show up as an owner’s income in the report. But in reality, you did not receive that money.
To eliminate this issue, our system gives you the option to log the deposit in the system but ‘Exclude’ from the owner payout.
- From tenant Details page: In the ‘Deposit‘ section on this page, you will see the different types of deposit amounts. If the deposit amount is not provided during lease creation time, you can add the LMR or security deposit amount by following the steps below:
- Click Action > Deposit Info from the top right
- Or you can also go to the Deposit section > click Edit (pencil icon)
- Check the “Edit Security/Rental Deposit” box
- Enter the amount if it is not provided
- Enter the date if it is not provided. If the amount is provided but there is no date that means you have not collected the deposit or LMR yet.
- Choose the bank account. In many cases, you might want to collect all of your deposits in a separate bank account.
- Click ‘Update’ to save the changes.
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