When a customer moves out of their unit, you decide what to do with their security deposit: refund in full, refund partially (withholding part of it for damages), or withhold all of it with a documented reason. Settlement is a deliberate step you initiate yourself, it's never automatic.
Who this article is for
Deposit settlement requires the Owner or Manager role. If the settlement button is missing or greyed out, ask an Owner on your team.
Before settling a deposit
The rental must have a deposit taken at signing. Rentals created manually without a deposit don't have the Deposits tab.
The move-out must be scheduled (Schedule move-out): the settlement button appears as soon as the move-out is scheduled, whether or not the inspection has been completed. The inspection remains a separate, recommended step, but it isn't a technical prerequisite to settlement in the current interface.
For a Stripe refund, the Stripe Connect account must have available funds and the original payment must be valid.
Open the settlement dialog
Step 1.
Open the rental record and go to the Deposits tab. This tab appears only if the rental has a deposit; otherwise it's hidden.
The Deposit card on the Summary shows the current status: Collected (taken at signing, rental still active, not yet settleable), Unsettled (move-out scheduled, waiting on your decision), or Settled (already processed, nothing to do).
Unsettled: move-out scheduled, waiting on a decision.
Step 2.
Once the move-out is scheduled, the status becomes Unsettled and the Settle deposit button appears on the Summary's Deposit card. Click it to open the dialog.
Choose a settlement option
The Deposit settlement dialog shows the unit and deposit amount as a subtitle, then the question How to settle this deposit? with three options.
Full refund: returns the entire deposit to the customer. No reason required.
Partial refund: a Refund amount field appears (maximum the original deposit amount) and the Settlement reason field becomes required to explain the withholding.
Retain full amount: no amount to enter, you keep it all; Settlement reason is required.
Step 3.
Choose an option, then click Confirm settlement. While it processes, the button shows Processing…. A notification confirms Deposit settled successfully, or flags an error if settlement failed. To leave without changing anything, click Cancel.
The status becomes Settled and the Deposits tab shows the refunded and retained amounts.
What happens automatically
With Full refund
Stripe issues a refund on the deposit's original payment; the customer receives the money on their original payment method (card, pre-authorized debit) within 5 to 10 business days. Stortech doesn't send a specific transactional email; Stripe may send its own refund receipt.
With Partial refund
Stripe issues a partial refund for the entered amount. The retained balance stays in your Stripe Connect account. The reason is kept in the rental's history, under the Activity tab.
With Retain in full
No Stripe call is made. The reason is kept in the history and the balance stays available to you.
Special case: deposit collected offline
For deposits collected offline (cash, cheque, bank transfer), no Stripe call happens at settlement time. Settlement is purely bookkeeping on Stortech's side: you'll need to return the money to the customer through your own means if you choose a refund. See Collecting a security deposit in cash or by cheque for tracking these deposits.
Proof of deposit payment (without an invoice)
A security deposit is never invoiced: it isn't a sale, there's no tax on it, and the amount is refundable. Your customers get proof through other means instead: the customer portal always shows the Deposits section (amount, status, refund conditions); on a Stripe refund, the customer gets Stripe's own refund confirmation directly; and at settlement, Stortech sends a deposit settlement email stating the amount paid, refunded, or withheld (with the reason, if withheld). This email serves as the customer's move-out proof; its wording is customizable under Settings > Emails.
Statuses and key fields
Item | Meaning |
Collected | Taken at signing, the rental is still active. Not yet settleable. |
Unsettled | Move-out scheduled, waiting on your decision. |
Settled | The deposit has been fully processed (refunded or retained). |
Full refund | Returns the entire deposit. No reason required. |
Partial refund | Returns part of it. Reason required. |
Retain full amount | Keeps it all. Reason required. |
Common issues
The Deposits tab doesn't appear on a rental's record.
What to check: did the rental have a deposit at signing?
What to do: if not, no action is required; that's expected behavior.
The settlement button doesn't appear.
What to check: is the move-out scheduled? Does the deposit status already show Unsettled or Settled?
What to do: schedule the move-out from the rental record. See Unit inspection for the rest of the move-out process.
The Stripe refund fails.
What to check: does the Stripe Connect account have available funds? Has the original payment already been refunded?
What to do: check the balance on the Stripe dashboard. If funds are insufficient, top up the account before retrying.
The customer received the wrong amount after a partial refund.
What to check: what amount did you enter versus the displayed maximum?
What to do: if it was a mistake, issue an additional refund from the relevant invoice's record, or contact support.
I picked the wrong settlement option by mistake.
What to check: settlement isn't automatically reversible.
What to do: to undo a withholding, issue a manual refund from the Stripe dashboard. To undo a refund, run a separate charge. For complex cases, contact support.
Common questions
How do I fully refund the deposit of a customer who just moved out? On the rental record, schedule the move-out if you haven't already, open the Deposits tab, click Settle deposit, choose Full refund, and confirm. Stripe issues the refund to the original payment method in 5 to 10 business days.
How do I withhold part of the deposit for damages? Choose Partial refund in the dialog, enter the amount to refund to the customer, and explain the reason for the withholding in the Settlement reason.
How do I withhold the full deposit? Choose Retain full amount and document the reason in the Settlement reason.
Why doesn't the Deposits tab exist on some rentals? This rental didn't have a deposit taken at signing. No action required.
Why doesn't the settlement button appear? The move-out probably isn't scheduled yet: the status is still Collected. Schedule the move-out to make the button appear.
Do I need to complete the inspection before settling the deposit? Not technically required (the button appears as soon as the move-out is scheduled), but it's strongly recommended to document the unit's condition before deciding on a refund.
I clicked the wrong settlement option by mistake. How do I fix it? Settlement isn't automatically reversible. To undo a withholding, do a manual refund. To undo a refund, run a separate charge. For complex cases, contact support.
Where can I see all settled deposits across my site? The deposits report gives a facility-by-facility overview. See Deposits report.