Partial deposit refund for insured deposit scheme - Tenant Fee Ban

In accordance with the Tenant Fee Act 2019, the steps below outline how to refund part of a deposit to a tenancy, whose deposit exceeds 5 weeks rent and is registered with an insured deposit scheme.  

If your agency uses the insured deposit scheme to register tenancy deposit monies, the part refund is processed on the schemes website before being processed in Alto.

There are two types of deposit schemes: 

  • Insured deposit scheme - The agency holds deposit money during the tenancy
  • Custodial deposit scheme - The deposit scheme holds deposit money during the tenancy
    For more information on processing a Partial deposit refund for a custodial deposit scheme, click here

This article includes: 

Adding tenants bank details ready to refund

If the tenant has provided you with their bank details, these can be added to their contact record before starting any of the transfer steps. 
For more information on Adding tenant bank details, click here

Transfer the part deposit into your client account

You will need to make the transfer between your deposit account and client account in real time through your bank, before following the steps below.

  1. Click Tenancy on the main toolbar
  2. Select the relevant tenancy from Recent & Favourite Tenancies
    1.  Alternatively, find the tenancy using the Search Tenancies bar in the top right
  3. Click Tenancy on the side menu
  4. Click Actions
  5. In the dropdown menu, click Deposit Bank Transfer 
  6. The Transfer Deposit window opens
    1. Tenancy Deposit Held - This indicates the deposit amount paid by the tenants
    2. Transfer Date - This is the date which you transferred the tenant's deposit money from your deposit account, into your client account
    3. Transfer Amount - Edit this to the amount you are refunding to the tenant
    4. Transfer out Bank Account - The agents deposit account where the deposit has been held
    5. Transfer in Bank Account - The client account into which the deposit is being transferred
    6. Bank References - References can be entered if required
  7. Click Update

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Add Refund Item to make the deposit available

Even though you have transferred the deposit into the client account, you now need to make the deposit available to process the partial refund. 

  1. Click Actions
  2. In the dropdown menu, click Refund 
  3. The Refunds For This Tenancy window opens. Click Add Refund Item
    1. Charge Item - Click Deposit, and then tick Deposit from the list, to make the deposit available to use
    2. Description - Edit this to Part Deposit Refund
    3. Net Amount - Enter the part deposit amount you are refunding, the same amount as in the steps above
  4. Click OK

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The Refunds For This Tenancy screen will display the deposit available

  1. Select a Refund Type
  2. Tick if you want to Send Refund note
  3. Total To Refund will show the amount to go back to the tenant
  4. Click Update

 Note

A transfer of the refund amount will need to be made in real time from your client account to the tenant

A record of the payment is recorded in Accounts on the main toolbar, then Bank Reconciliation on the side menu. You can then View the Client Account

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