Security Deposits

Collecting the Security Deposit 

Sunroom will collect the Security Deposit on each property and transfer the funds within 7-10 business days to the bank account on file. Once you approve an applicant, the tenant(s) will be prompted to pay the security deposit through Sunroom and will kick off the lease drafting process.

If you have connected a bank account on Sunroom, it will be transferred directly and there's nothing else you need to do! We will alert you when the renter has initiated the transfer and when the transfer has been completed.

If you haven't connected a bank account, don't worry, we will notify you once the deposit has been received as a reminder via SMS.

Setting Up Collection Preferences

Sunroom makes setting up the collection preference easy to setup! We offer two options, connect a Debit or Bank Account, to collect the security deposit from the renter. 

Steps:

• Under your Partner Listing page, go to the 'Settings' at the top right hand corner.
• Click on 'Security Deposits' and add a collection method.

• Select Connect Debit or Bank
• Complete the steps and required information when choosing either option
  • All fields are required to be completed

Invite Client To Connect

You can connect directly to your client’s bank account by selecting 'Invite Client to Collect'. They can choose to connect their account through an Bank Account or Debit Card by clicking on the link you provide them here.

Once your client has clicked on the link, they will need to select 'Collect the security deposit & fee from renters.' It will prompt them to connect their bank account or debit card. They can also collect additional fees beyond a security deposit (i.e., double deposit, pet deposit, pet fee, etc.).

Note: Sunroom does not facilitate any regular monthly rent payments. However, we do confirm the owner has collected first month's rent before we kick off the move in process.

 

Setting Listing and Global Account Preferences

As a partner, you can set your security deposit collection preferences at the listing level or at a global level, which means every listing going forward. Setting security deposit preferences at a listing level is best if you are working directly with the owner. This allows each owner of each listing to choose how they'd like to receive security deposit funds. Setting security deposit preferences at a global level is best for property managers who work with multiple properties and like to collect and hold their security deposits for all properties until a renter moves out.

FAQ's

What updates will I get about the status of the deposit?

1. When the deposit is initiated
2. When the bank account has not been added yet
3. When the deposit is completed
4. If the deposit has failed

There will be a proof of transaction receipt sent to all parties involved in the transaction via email. You will also see the details and status of the security deposit in your Sunroom partner portal. 

What account should I or my client use to collect security deposits?

It is industry best practice to not co-mingle security deposit funds with other funds and accounts. We recommend property managers and owners should create a dedicated account for security deposits only. 

What information is needed to set up the bank account?

Sunroom requires:

• Account Name
• Routing Number
• Account Number
• First Name
• Last Name
• Email
• Phone
• DOB
• Last 4 of SSN
• Billing Address

As part of a mandatory identity verification requirement, Sunroom must collect, verify and maintain information on the individuals associated with every account as required by regulators. In addition, part of the USA Patriot Act is intended to promote transparency and prevent individuals from using complex company structures to hide terrorist financing, money laundering, tax evasion, and other financial crimes.

How long does the renter have to pay the deposit?

The renter has 24 hours to send their deposit once it's requested. If they fail to submit the security deposit within the allotted 24 hour time period, we will move on to the next qualified applicant. 

What happens if a security deposit is collected and the renter backs out before signing the lease?

Since a security deposit is intended to convey a renter's intent to enter into a lease agreement, it is up to you and the owner to decide what to do with the funds if the renter backs out. 

What happens with the security deposit at move-out?

The security deposit is your responsibility to return (if all conditions of upholding the lease agreement are met) to the renter at move out.