You can return a tenant’s security deposit directly in TurboTenant. Whether you’re refunding the full amount or keeping part of it for deductions, everything - from documentation to payout - happens in one place.
To start, open the Lease Profile for the tenant who’s moving out.
From there, you can begin the return in a few ways:
(1) Navigate to the Payments tab within that lease & click the Action button in the top right of the page
(2) Through the Moving Out Checklist in the lease
💡 TurboTip: The Moving Out Checklist helps you stay organized during tenant turnover-guiding you through key tasks like preparing the unit, conducting the final inspection, and ensuring security deposits are returned on time.
(3) You can also start a return directly from the Payments page, using the Action button at the top right.
❗Before you continue, note that deposit return rules vary by state. We include a link to research your state’s requirements so you can confirm you’re following the correct process.
Next, fill out the Return Security Deposit form:
Select the tenant
Enter the amount you’re returning
Add any details about deductions if applicable - you can write them in, upload photos, and attach receipts.
Once your details are set, link a bank account and select Send Deposit. A confirmation message will appear letting you know the return is processing.
💡 TurboTip: If you connected your bank via Plaid when setting up rent payments, it's automatically saved as your payment method for deposit returns — no need to re-enter your bank details. It will be used here automatically, and TurboTenant will also use it if a payout reversal ever needs to be resolved on your behalf.
After it's sent, you can check the status anytime in the Lease Profile's --> Payments tab. You'll receive an initial receipt from Stripe when you make the payment, followed by an email confirmation once the payout to your tenant is successful.
Funds are typically transferred to your tenant within 7-10 business days after you initiate the deposit return (assuming your tenant accepts the return and adds their bank account). However, delays can occur if the refund is processed near a weekend or bank holiday, in which case the funds may not post until the next business day. Note: your tenant will need to add a bank again even if they have added one already to make rent payments.
Canceling a Security Deposit Return
If your tenant has NOT added a bank account
If your tenant has not added a bank account to receive their security deposit, you can cancel the return once your payment has cleared. This will initiate a refund back to the original account you used to send the deposit.
It can take 7-10 business days for the funds to appear in your bank after cancellation.
If your tenant HAS added a bank account
If your tenant has already added a bank account, you can still cancel the Security Deposit Return, but only before the payment has cleared.
Once the payment has cleared and the tenant has added their bank account, the return can no longer be canceled.
If you cancel the return before it clears, the funds won’t be immediately available. You’ll still need to wait for the original payment to fully clear before the refund is processed, so it may take some additional time for the money to be returned to your account.
To cancel a security deposit return:
Go to the Lease Profile for the tenant that you're returning the deposit to. If it is now a past lease, you may need to toggle to Past Leases.
Go to the Payments tab
Click the dropdown to the right of the security deposit
Click Cancel Return
Frequently Asked Questions:
Q: Can I return a tenant’s security deposit through TurboTenant?
A: Landlords who have received payments through TurboTenant are eligible to return them to tenant(s) directly on the platform. You can issue the refund from your TurboTenant account, whether it’s the full amount or a partial refund with deductions.
Q: Can renters receive their refund in a savings account?
A: Yes. Renters can add any supported U.S. bank account, including a savings account, to receive their refund.
Q: Does the renter need to add a payment method before I issue a refund?
A: Yes — your tenant will be prompted to add a bank account to receive their refund. This is a separate step on their end, regardless of any payment method they already have on file for paying rent.
Q: Are accelerated payouts available for security-deposit refunds?
A: No. Accelerated payouts are not supported for deposit refunds. Funds must fully clear before they can be deposited.
Q: Can I refund a deposit to multiple tenants at once?
A: No. A security deposit refund can only be deposited into one bank account—the account the tenant adds.
Q: Can I track security-deposit refunds in my CSV export?
A: Not at this time. Security-deposit refunds do not appear in the CSV export.
Q: Can I record a security-deposit refund as an offline payment?
A: No. Offline payment tracking is not available for security-deposit refunds. Refunds must be processed through TurboTenant.
Q: What happens if a renter has payments disabled?
A: You'll need to reach out to our team to reenable payments for your tenant.
Q: Is a check sent to my tenant if I initiate a security deposit return through TurboTenant?
A: A check is not initiated to your tenant if you return a security deposit through TurboTenant. As soon as you initiate a security deposit return through TurboTenant, your tenant will receive an email notification prompting them to add a bank account in order to receive the security deposit return.
Q: Does the tenant have to have their portal open in order to receive their security deposit?
A: It is important that your tenant's account is still open so that they can add a bank account to receive the security deposit to the bank account they'll add.