In some situations, multiple residents contribute to a security deposit, but only one resident is responsible for receiving the monthly rent invoice. For example, Kim, Ben, and Trevor may all be lease holders and contribute equally to the security deposit, but only Trevor receives the monthly rent invoice and submits rent payments or all three pay but at different random times with the total rent amount.
This setup allows you to:
Collect and track security deposits for all lease holders.
Generate a single monthly rent invoice.
Maintain all lease holders on the lease for inspections and lease renewals.
Return security deposits to the appropriate individuals at move-out.
Example Scenario
Lease Holders:
Trevor McDougall
Kim Porter
Ben Strives
Requirements:
All three residents contribute to the security deposit.
Only Trevor receives the monthly rent invoice.
All three residents remain lease holders.
Security deposits can be returned to all three residents at move-out.
Step 1: Create the Lease
When creating the lease:
Enter the total security deposit amount.
Add all residents as Lease Holders and Payees
Complete the lease creation process.
When the lease is created, Propra will automatically create each resident's portion of the security deposit based on the lease setup.
Step 2: Designate a Single Rent Payee
After the lease has been created:
Go to the lease page.
Scroll down and select Manage Residents.
Keep the tenants selected and click Next
Toggle off the Payee option for the residents who should not receive rent invoices.
Leave all residents marked as Lease Holders.
In our example:
Trevor McDougall = Lease Holder and Payee
Kim Porter = Lease Holder only
Ben Strives = Lease Holder only
This ensures that only Trevor receives the monthly rent invoice while all residents remain attached to the lease.
Step 3: Update the Primary Payee's Name
To make incoming payments easier to identify:
Open the primary payee's profile.
Edit the Contact Details by selecting the pencil icon.
Update the name to include the other lease holders.
Example:
Trevor McDougall (Kim Porter, Ben Strives)
This makes it easy to identify the unit and lease group when receiving e-transfers or other payments from any of the residents.
Benefits of This Setup
Using this method provides several advantages:
Single Rent Invoice
Only one resident receives the monthly rent invoice, simplifying billing and collections.
Multiple Security Deposit Holders
Each resident's security deposit portion remains properly recorded for future refunds and they will be able to download their receipts in their portals.
Lease Documentation
Because all residents remain Lease Holders:
All lease holders can sign inspections.
All lease holders can sign lease renewals.
Lease records remain accurate throughout the tenancy.
Easier Payment Identification
Including all resident names in the primary payee's contact information makes it easier to identify payments received from different members of the household.
Before issuing deposits if your tenant has this naming convention you can easily check the other residents financial page to see if they had paid a security deposit.
Returning Security Deposits at Move-Out
Before issuing security deposit refunds:
Open the lease.
Select Manage Residents.
Toggle the Payee option back on for each resident who should receive a security deposit refund.
Once the residents are marked as Payees again, you can issue the security deposit refund.
Propra will create the appropriate payable entries for each resident based on their security deposit allocation, allowing the refund to be distributed correctly.
Important Notes
Keep all residents marked as Lease Holders throughout the tenancy.
Only remove the Payee designation for residents who should not receive monthly rent invoices.
Before issuing security deposit refunds, ensure all residents receiving a refund are marked as Payees.
Updating the primary payee's name to include the other lease holders can help prevent confusion when receiving payments and processing move-out refunds.