Accounting for last month's rent & security deposit

[Marc Lyman]

I collect last month’s rent and security deposit when a new tenant moves in. How do most of you account for the receipt of this money? Right now I create a separate account in Quick Books for the deposit of each unit and list it as a current liability. Then when the tenant moves out if repairs are needed I transfer the needed $ to the repairs & maintenance account and refund the difference. Should last months rent be handled the same way? Keep it as a current liability then transfer it to rental income the month it is actually being used?
Thanks for your thoughts.