🧾 Step 1: Create the New Lease
Go to Properties and select the unit the tenant is moving into.
Select Create New Lease.
Enter the rent amount, lease dates, and any applicable deposits (security or last month’s rent).
Be sure to include updated terms, charges, or rent adjustments that apply to the new unit.
This new lease represents the tenant’s fresh rental agreement for the new unit — even if the move happens on the same day their old lease ends.
📅 Step 2: End the Current Lease
Go to the tenant’s current lease and select Terminate.
Set the move-out date as the day they’re vacating the old unit (typically the same day they move into the new one).
Issue any deposit refunds or last month’s rent.
Select Issue Deposit, which will include any interest accrued.
Follow your province’s rules on deposit returns, including timelines and interest requirements.
Select Retain for rent collection and enter the rent amount if using the deposit for last months rent.
⚖️ Why This Is Best Practice
Ending the current lease and issuing the deposit before starting the new one ensures you are:
Following provincial tenancy laws — most provinces require that security deposits and last month’s rent be reconciled and reissued when a lease ends, even if the tenant continues renting elsewhere in the same property.
Maintaining clean financial records — it separates accounting between two leases and prevents duplicate or overlapping transactions.
Accurately calculating interest — ensures the tenant receives what they are owed based on the deposit’s original collection date.
Protecting yourself in disputes — clear lease boundaries make it easy to demonstrate compliance with tenancy regulations.
💰 Step 3: Record the New Deposit
Once the old deposit is issued, the tenant’s new lease should include a new deposit entry that reflects the collection for the new unit.
This maintains a clear audit trail.
It ensures the interest calculation and accounting start fresh for the new lease term.
🚫 Why You Shouldn’t Just Move Deposits or Payments to the New Unit
While it may seem easier to simply “move” the tenant’s deposit or last month’s rent to their new unit, doing so can cause problems with your financial records and compliance.
Deposits are tied to the specific lease and unit where they were originally collected. By law, that deposit technically belongs to the old lease — it must be issued back with interest when the lease ends. When the tenant begins a new lease, you’ll need to collect and record a new deposit associated with that new unit.
This process maintains a clear audit trail, accurately reflects interest calculations, and ensures that both leases are fully accounted for. If you simply transfer the transaction, the system (and your records) won’t properly show when the deposit was paid, what interest was owed, or how it was applied — which could create confusion in reports or even compliance issues in an audit.