This step will create a damage deposit invoice for your tenant, and an outgoing payment instruction to handle the funds once they have been paid into PayProp.
Deposit types
PayProp can store insurance-backed deposits in your PayProp client account or pay them to an external client account or custodian. To start, you will need to select the ‘Deposit type’ in the drop-down shown below.
Both types will create a tenant invoice, but the payment will be handled differently.
The following fields are used in both deposit types:
Invoice category * | These are the invoice categories taken from your PayProp account. You will need to choose one that is appropriate for a holding deposit. If none exists you will need to log into PayProp and create one under 'Application settings'. |
Amount * | The amount of the damage deposit |
Description * | The description shown to your tenant on the invoice, and the landlord on the owner statement. For example: ‘Damage deposit for Bob Brown - Rose Cottage, 1’ |
* Required fields
Please note: Greyed-out fields can only be changed in Reapit by closing the app. Blank fields or incorrect information may cause errors.
Held in PayProp
Selecting this tells the app that this is an insurance-backed deposit that will be held in your PayProp client account. Once you have entered all the information, a payment will be created in your PayProp account with the category ‘Deposit’, and will be commission adjusted.
Held externally
Selecting 'Held externally' pays the deposit to an external account. The most common example would be a deposit custodian, but this could also include insured deposits held in an external agency client account.
Creating this deposit will generate an invoice to the tenant and payment to the beneficiary you choose. This payment will be commission adjusted and assigned the category ‘Deposit custodial’.
You will also see two additional fields with this deposit category, 'Beneficiary' and 'Payment reference'.
Beneficiary * | Choose the beneficiary in your PayProp account from the drop-down that represents your deposit custodian. Alternatively, you can type the name of your custodian into the box and the app will search your PayProp account. Once you find the required beneficiary, select it. |
Payment reference * | Enter the deposit ID provided by your custodian. This will show in their bank account once the payment has been received. |
* Required fields
Payment categories
Please note: The Deposit custodial category may not suit all potential deposit types, but was chosen as it supports PayProp's upcoming Schedule 23 functionality. Select this option for all deposits that will not be held in your PayProp client account.