How to keep track of deposits and deductions

Record each tenant's deposit, where it is held, what you take off it at move-out, and send them an itemized statement.

Updated 2026-10-25

The Deposits tab in Rentals lists every deposit on a lease you let to a tenant: how much, when it came in, where it is held, what you deduct at move-out and what goes back to the tenant.

Otto records deposits; it does not hold, take or return money.

Record a deposit

Open the unit and press Edit lease under the tenant's lease.
Type the Deposit, and fill in Deposit received and Deposit held with (the protection scheme or account, and its reference).
Press Save. The lease now shows on the Deposits tab.

When you give the deposit back, edit the lease again and fill in Deposit returned. The tab then shows it as returned, and Deposits held at the top stops counting it.

Itemize deductions

On the Deposits tab, under the tenant's deposit:

Type what the deduction is for, such as "Carpet cleaning", and the Amount.
Press Add. To return goes down by that amount.

Add stays grayed out until both are typed. To take a deduction off, press Remove beside it and confirm.

Deductions cannot come to more than the deposit. If the tenant owes more, bill the rest on an invoice.

Send the tenant their statement

Press Draft deposit statement to tenant. Otto writes an email listing each deduction, the total deducted and what is to be returned. It waits in Reviews until you approve it; nothing is sent before that.

If it doesn't work

"This lease has no deposit we hold. Add the deposit on the lease first." — edit the lease and type the Deposit.
"Deductions would come to more than the deposit. Bill the rest on an invoice instead." — lower the amount, or invoice the difference.
"… has no email address. Add one on their contact first." — the statement needs the tenant's email on their contact.