Returning Tenant's Security Deposit - RentRedi

Dallas, Texas
General Landlording & Rental Properties
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Returning Tenant's Security Deposit - RentRedi

Adam AhrensPro Member
Member since 2022 · 2 posts · 4 votes

We are curious if others have experienced this or have a better way.

We currently utilize RentRedi to handle our rental properties. We had a tenant move in 4 years ago and pay their security deposit. They are now moving out and we want to return a portion of the security deposit back to the tenant however RentRedi doesn’t allow any type of financial return after 180 days. So we will have to cut a check to the tenant instead of direct deposit through RentRedi.

Any current landlords using RentRedi experienced this? Is this true or are we missing somewhere on the app where we can return the security deposit?

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Taylor DaschBusiness Member
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
7mo

That 180-day limit is a huge pain with these platforms. Honestly, if the system won't let you process it, I wouldn't overthink it—just cut them a paper check or use something like Zelle/Venmo if you're comfortable with that. You can always upload a copy of the check or a screenshot of the payment to their file in RentRedi so you have the record stored in one place. Getting the money back to them is the important part; the method matters less as long as you have a paper trail.

[email protected]254-718-4249
Taylor Dasch | EG Realty560 Reviews
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  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 604 votes
    7mo

    Yes, that is a limitation others have run into with RentRedi. RentRedi’s system only allows security deposit returns through the platform within 180 days of the deposit being received. After that window, the software doesn’t support an in-app refund, so you will need to issue a manual check or external transfer to the tenant for the remainder of the deposit.

    1Reply
  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    7mo

    That 180-day limit is a huge pain with these platforms. Honestly, if the system won't let you process it, I wouldn't overthink it—just cut them a paper check or use something like Zelle/Venmo if you're comfortable with that. You can always upload a copy of the check or a screenshot of the payment to their file in RentRedi so you have the record stored in one place. Getting the money back to them is the important part; the method matters less as long as you have a paper trail.

    [email protected]254-718-4249
    Taylor Dasch | EG Realty560 Reviews
    WebsiteView Page
    2Reply
  • Sarah Smith
    Member since 2026 · 1 post · 1 vote
    3mo

    Since RentRedi seems to block platform refunds after 180 days, the practical path is probably to pay outside the app (check/ACH/Zelle), then upload the payment proof and final itemized deposit ledger back into RentRedi so the file is complete. Before sending the balance, double-check your state/local security-deposit rules for the return deadline, required itemization, and whether any interest has to be included after a 4-year tenancy. Not legal advice--just a compliance checklist to run before you cut the check.

    1Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3mo

    That seems very odd to me, although I have not used such systems. My point is, the Security Deposit, in most states, belongs to the Tenant. Period. Until/unless the LL makes appropriate accounting and return per local laws. Are all of the funds paid to the LL upon receipt, or are they held for 180 days and then turned over? Seems like the LL is on the hook for something he has little control over. What about the Tenant, do they get a refund, either during the 180 or at move out from the system, or from the LL? Seems like one of those situations that are just fine, until they aren't, especially in states that have very specific requirements for holding AND handling Sec Dep.

    Just an added thought...as a licensed PM we always held Tenant Deposits, it was never paid to the Owner upon receipt. Only after move out and reconciliation completed would any remaining Deposit money be paid to Property Owner.

    1Reply
  • Rachid AbadliBusiness Member
    Investor · Sacramento, CA · Member since 2024 · 125 posts · 33 votes
    3mo

    Richard raises a good point about the fiduciary side. In California, this is even more acute — AB 2801 changed the deposit rules significantly.

    You now have to provide photo documentation of the unit at move-in and move-out, and your itemized deduction statement has to be extremely detailed. The 21-day return window was already tight, but now the documentation burden means you need a system that can produce those records on demand, not one that locks you out after 180 days.

    I handle deposit returns outside any platform for exactly this reason — paper check with a printed itemization letter, copies of all photos with timestamps, and a signed delivery confirmation.

    It's old school, but it creates an airtight paper trail. The platform is great for tracking during the tenancy, but for the legal moment of returning the deposit, I want full control over the documentation package.

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