Under Leases & Tenants, is there a way to adjust the balance manually? The system added prorated rent, but I want to remove it since it’s causing small balances to remain on the ledger…
I know that I can add credit to the property, but I want to make sure it doesn’t show that I’ve given concessions or similar at the end of the year.
I’d find this helpful as well! It would be helpful to be able to individually edit specific rents for a specific month. This comes in handy when I give my renters a discount for a specific month (like for their birthday or christmas).
Discounts can be recorded via the “Add a Credit” feature available via the “More” button on your Leases & Tenants page. This helps you track and remember why a particular month’s rent payment was less than usual.
“Charges” cannot be adjusted directly because that tends to lead to confusion months (or years) down the road. Most investors prefer to make these adjustments via additional entries for credits and charges in order to better track the underlying activity.
I also see a prorated amount on the Leases & Tenants page for a property. The tenants paid first and last rent up front, started renting on April 1, and the May rent is due on April 15. The tenants are paying on time. I didn’t initiate any prorated rent for April 1 to April 14 and no such transaction appears in the Transactions page, yet this line item appears in the Leases & Tenants page for this tenant and appears on the Tenant Ledger. How do I prevent the creation of this ghost transaction?
@david I think the way you’ve handled this on the tenant ledger is the best way. Simply issue a credit to net out the auto-generated prorated charge for April, and then everything should flow nicely from there. The system thinks April 1-15 should be prorated because the lease start and rent due dates don’t match. This is an edge case scenario that it’s not set up to handle at the moment.
I do not see a specific credit category for a discount on a monthly rent charge. There are many category’s, but none that cover a simple rend discount.
Or a category that covers unpaid rent at the end of a lease if a tenant gets evicted during their lease.
That’s correct. If a portion of rent is not paid, there’s nothing to categorize on your Transactions page. When issuing a “credit” for a rent discount on your tenant ledger, you can categorize it as “Income” for tracking purposes.
Unpaid rent at the end of a lease is simply not booked since it was never paid. In that scenario, your tenant ledger will show a balance due, unless you issue a credit (similar to the above) to zero it out. Either way, there’s no rental income to recognize on your Transactions page.
Hope that all makes sense!
There is also a category called “Rent Concession” that can be applied to a Credit.
I would like a way to do this as well. My tenants pay rent on the 15th of each month for one of my leases, not the 1st. It’s awful to try to have credits or a balance when everything is timely. This should be an easy thing to allow, “Day rent is due.” Way easier than credits and all that other stuff. I may use my previous software for this property just because of this sticking point.
It appears that you have to BOTH create a credit under the lease as well as a transaction for a rent concession in order for it to reflect correctly on reporting. Please confirm.