But now he is staying so we decided to play the cat card, and told him that per his lease pets not allowed and if he would like to keep it we will need to amend his lease to include additional $100 pet rent plus collect additional security deposit.

Hi Babu,A simple rental property balance sheet will have the following accounts:Assets: Cash, tax and insurance escrow, fixed assets and depreciationLiabilities: Credit cards, security deposits, and loansEquity: Opening balance equity, owner's contributions/distributions, retained earnings and net incomeThere could be a number of reasons that your balance sheet does not balance.

If they damage the place, that is what the security deposit and if necessary, the court system are for.

It “sounds” like you want to lend someone money for an earnest money deposit to make an offer on a property?

I find that a lot of my bookkeeping clients do not save money for taxes, repair or event those security deposits. 

Proceeds should be deposited directly to IRA4.

I have signed a lease and transferred payment of 1st month's rent and security deposit to the landlord.

All rents and deposits are payable to and get deposited into that. 

Ask to see a copy of the lease and look for the length of lease, current rent amount, tenant obligations like paying for utilities and adhering to house rules and look for Landlord obligations like things the landlord may currently being paying for (like trash and water)Make sure to have an assignment of the lease and clear language on the security deposit WITH interest shall be transferred to the new owner at settlement.Consider tenant quality - what’s their payment history looked like, obtain rent receipts or bank statements from the seller to review on-time payment history.

Not bad here in Sac though since everything is online from turning tenant request called RFTA to rent negotiation through email, landlord portal, direct deposit set up.