How Rent Payment Periods Work - [Knowledge Base]

In this section we outline how you can record when rent is underpaid, paid exactly, or overpaid.

Upon creation of the lease, we will automatically generate a list of payment periods. Payment periods are dates that rent is due.

When you log payments the system automatically applies payment to the ‘overdue’ rental period, or if no rent is overdue, to the next rental period. It then works out how much rent is left.

If you mark the payment period as ‘Complete’ the system will move onto the next payment period.

Example:

Step 1. You have a monthly lease with a rent amount of $500 that starts on the 1st May, your payment periods would look like this:


Date

Expected Rent Amount

1st Jan

$500

1st Feb

$500

1st Mar

$500

1st Apr

$500



Step 2. Your tenant pays $500 in May, which is great!

This payment period is "Complete", mark it as such and the system will move to February.

Date

Expected Rent Amount

1st Jan

$0 (Complete)

1st Feb

$500 (The system is now here)

1st Mar $500

$500

1st Apr $500

$500


Step 3. Your tenant then pays $250 for the month of Feb, make sure the payment period is not marked as complete to leave it "open", (the system will help you out and warn you if you try to close it).

Date

Expected Rent Amount

1st Jan

$0 (Complete)

1st Feb

$250 (The system is still here)

1st Mar $500

$500

1st Apr $500

$500


Step 4. If the tenant is late, and it’s now March, we will show the outstanding balance of $750.

Date

Expected Rent Amount

1st Jan

$0 (Complete)

1st Feb

$250   

1st Mar $500

$500 (The system is now here - $750 due)

1st Apr $500

$500


Step 5. If the tenant then pays $300, enter $300 for February and mark it as complete (by default, the system will show the first payment period).

Since this amount exceeds the expected rent for February of $250. The system will ask - "Do you want to overflow this into the next payment period" (or similar messaging). If you select 'YES', it will automatically apply the extra $50 towards the March payment.

Date

Expected Rent Amount

1st Jan

$0 (Complete)

1st Feb

$0 (Complete)

1st Mar $500

$450 (The system is now here - $450 due)

1st Apr $500

$500



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