Treatment of a returnable security deposit on an apartment I'm renting: Quicken for Mac 2017
I'd like to know the correct way to treat a security deposit I've just paid to a property agent in respect of an apartment I'm renting.
When I terminate the rental agreement I expect to get the deposit back, I'll be leaving the property in good order!
I believe I need somehow to create a "creditor account" in my Quicken for Mac 2017 so as to accurately reflect my "Net Worth" figure.
I'd really like to know what others think the treatment should be.
Peter (QuickPeter) in England
When I terminate the rental agreement I expect to get the deposit back, I'll be leaving the property in good order!
I believe I need somehow to create a "creditor account" in my Quicken for Mac 2017 so as to accurately reflect my "Net Worth" figure.
I'd really like to know what others think the treatment should be.
Peter (QuickPeter) in England
0
This discussion has been closed.

Comments
When your lease is up, you can simply transfer the cash back to the source account.
Doing this will keep your net worth correct, but your cash and credit accounts will be correct for present balances as reported by your bank.
I'm trying to reflect that the deposit I've paid to the agent makes them a creditor, to me.
They owe me that money, right? Therefore, it should score as part of my net worth I believe.
Let's see what the others have to say.
Peter
I would not treat it as an asset for a couple of reasons. First, unless your net worth is very small, how you treat the security deposit will not significantly affect your net worth. Second, even though you expect to get your deposit back, I'd be conservative and assume the worse. Who knows? You might have a dishonest landlord.
I hope these suggestions are of interest. Since you don't have to follow any legal record keeping requirement, what you do is a matter of taste. There is no single 'correct' way to treat the deposit.
Peter
I particularly like your " ...even though you expect to get your deposit back, I'd be conservative and assume the worse."
That's prudent and a good point, you must be a CPA, right? :-)
Peter
I hope we have more of these type of exchanges in the future.
Best wishes, Peter