Deposit Returns on Alcove

Landlord process for deposit refunds, evidence submission, disputes, resolution, and deposit payments on Alcove

Homeowners on Alcove manage the entire process directly on the platform. This includes handling deposit payments, tracking ledger activity, initiating returns, processing payments, resolving disputes. 

Initiating Your Deposits

At the end of your tenant's lease, Alcove will send you an email notification informing you that the deposit return process is now open. You will have a 30-day window following the end of the lease to finalize the deposit return.

Before completing your deposit return, please ensure that you have checked the following:

1. Alcove’s Tenant Turnover Service: These are automatically scheduled for you and typically completed within 3-4 business days of the lease end date. You can view its status on the Service Request tab. Once the job report is submitted, Alcove's vendor operations team will review it and notify you of any alerts and suggested actions within the ticket. However, landlords and owners must also review this report.

2. Delinquent Invoices: Within 3-4 business days of the tenant's move-out, Alcove will sum up any delinquent invoices from the tenant and send these to you via email.

3. Property Log (Optional): For context on the bedroom, you can check your Property Log to view historical on-platform events for that bedroom.

4. Self-Inspection (Optional): While our vendor will provide a jobs report with pictures of the premises, you may also decide to visit the property. If you choose to do so, please provide 24-hour notice to your tenants by selecting the ‘contact resident’ button in your Service Request tab.

In the Leases & Tenants tab, you have the option to choose how you want to handle the deposit refund process.

Full Refund:

Selecting this option indicates that the tenant has fulfilled all their obligations under the lease agreement, and the rental property has been returned in the same condition as provided, allowing for normal wear and tear. In this case, you are obligated to return the tenant's full security deposit within 30 days without any deductions. This option should be selected when the tenant has cleaned the bedroom, repaired any damages they caused, and met all other lease requirements and rent obligations.

Deductions/Damages Apply:

Selecting this option indicates one of the following:

• • The tenant has returned the rental property in a condition that requires cleaning, repairs, or replacements beyond what is considered normal wear and tear.
  • The tenant owes unpaid fees and/or rent.

In either situation, you have the right to deduct the associated costs from the tenant's security deposit. You are required to provide the tenant with an itemized list of the deductions, along with supporting receipts and invoices.

Please note: General turn cleans and Alcove’s tenant turnover service cost are considered normal wear and tear and cannot be deducted from the tenant's deposit.

What Happens After:

Alcove will review and process the refund:

• If the charges to tenants are less than the deposit amount: Alcove will initiate the process of refunding the tenant's deposit. The tenant will receive the selected Deposit refund amount refund via a bank/ACH transfer directly to their bank account. The refund process may take several business days to complete, depending on standard ACH processing and bank transfer times. The Deposit refund amount]will be deducted from your ledger and used to reimburse the tenant, reducing your next rent payment by the same amount.

• If the charges to tenants are greater than the deposit amount: Alcove will send an invoice to the tenant on your behalf to recover costs for the specified excess damage or unpaid amount of the Claimed amount. After confirming receipt of the funds from the tenant, we will credit the amount to your ledger. The credited amount will then be transferred to you according to your payout preferences on Stripe.

Tenant Deposit Review:

The tenant will receive a notification of your submitted evidence and may choose to contest these deductions. If there is a dispute, you will be notified, and the tenant will need to provide their own evidence, which will be accessible to you in Alcove’s Resolution Center. This will enable you to work towards a resolution with your tenant.

Landlord Proposal:

• If you receive a dispute, you can propose to accept, deny, or counter the request and directly communicate with the tenant via the lease modification center.
  • If you accept, Alcove will proceed to process the remaining amounts.
  • If you counter or deny, you will be able to continue to chat with the tenant to provide further communications.

Tenant Action:

• The tenant can either accept your proposal, counter it, or deny it. They can also chat with you via the Resolution Center
• If a tenant rejects your proposal, you may continue to communicate with them and suggest alternative solutions to reach a resolution.

Escalate to Alcove:

If a resolution cannot be reached after the landlord proposes a solution, either the tenant or the landlord has the option to escalate the issue to Alcove for further assistance. At this point, Alcove may provide a non-binding determination to both parties.

Small Claims/ Further legal process:

If either party cannot reach a resolution, either party may choose to take the other to small claims court to settle the dispute. Please reach out to partner@alcoverooms.com for further support.

Frequently Asked Questions

What can be deducted from a tenant’s security deposit?
Landlords can deduct any damages beyond normal wear and tear from a tenant’s security deposit. See the article here for more information and examples of eligible charges & deductions. General room turnover cleaning and Alcove’s tenant turnover service costs are considered normal wear and tear and cannot be deducted from the tenant's deposit.

How do I document charges for deductions on the Alcove portal?
To maintain transparency with the tenant and to keep a clear record, document all charges for deductions on the Alcove portal. Upload photos of the before and after condition (available from your Property log on the Alcove portal) and any associated receipts or invoices for work completed. This will provide an accurate account should there be any disputes from the tenant after submission.

What if a tenant disputes the charges?
If there is a dispute, you will be notified, and the tenant will need to provide their own evidence, which will be accessible to you in Alcove’s Resolution Center. This will enable you to work towards a resolution with your tenant. If you receive a security deposit dispute from a former tenant, you can propose to accept, deny, or counter the request and directly communicate with the tenant via the lease modification center. The tenant or the landlord has the option to escalate the issue to Alcove for further assistance. At this point, Alcove may provide a non-binding determination to both parties. If no resolution is reached, either party may choose to take the other to small claims court to settle the dispute.