How do I record/show a loss when damages are more than security deposit amount

Question

We have a tenant who we asked to leave when he was caught smoking in the apartment. Not only did he owe us rent, but the cost of fixing the apartment is more than the amount of his security deposit. How can I record/show our loss?

Frankx · Answer

Hi @Dianeo911

Sorry to hear of the issues with that tenant.

To "record/show a loss" for such damages, you just need to record all the various expenses that you'll incur as you go through the process of fixing all the things to get the apartment back in shape.  Just remember to record all those costs in Quicken as you go through the fix-up project.  I assume that you are using the "Home, Business, and Rental Property" version of Quicken.  Just make sure that you track all your costs and allocate them to the correct apartment.

As far as the security deposit goes - you'll need to record that as income and all the expenses will go towards offsetting that.

Let me know if you have any followups.

Frankx