Handling tenant deposits in Kenya: holding, deductions and refunds

At move-in

• Put the deposit amount and the refund terms in the lease.
• Give a receipt for the deposit, separate from rent.
• Record the unit's condition with dated photos, signed by both of you.

At move-out

• Inspect the unit with the tenant and compare with the move-in record.
• Deduct only unpaid rent, unpaid bills, and damage beyond normal wear and tear.
• Write down each deduction with its amount and reason, and share it.
• Refund the balance by M-Pesa or bank and keep the reference.

Using the deposit as last month's rent

Tenants sometimes ask to use the deposit for their final month. If you agree, record it as a transfer from deposit to rent, so your books and the tenant's balance stay correct.

How RumiaRent helps

RumiaRent records deposits as money held, not income, and produces a move-out settlement listing each deduction and the refund due. It records the refund but does not send the money for you. This guide is general information, not legal advice.