How to Record Move-out Damage Charges
Recording the assessment of repair costs against a tenant after a move-out inspection for damages beyond wear and tear.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Tenant Receivable | Asset | 550.00 | - |
| Repair Cost Recovery Revenue | Revenue | - | 550.00 |
💡 Accountant's Note
Charges for damages are billed to the tenant as a receivable and recognized as recovery revenue to offset the repair expenses incurred by the landlord.
Practitioner & Systems Framework
💻 ERP Architecture
Post charges to the tenant ledger within the property management sub-ledger.
⚠️ Audit Flags
Damage charges exceeding the total security deposit amount without subsequent collection efforts.
📄 Required Documentation
Move-out inspection report, photos of damages, and repair contractor estimates.
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