What do I do when a tenant pays less rent, due to an expense?

The steps below provide examples of how to show that a Landlord is allowing a reduced rent payment, due to a Tenant paying for an expense, whilst still deducting your management fees.

If a Tenant has paid less rent due to paying for an expense, you can either:

• Raise your rent invoice on the Tenancy for the full amount as normal, but also add a negative sundry invoice for the amount of the expense, or,
• If you have already receipted the rent amount paid by the Tenant and have the balance of rent outstanding, you can achieve the same outcome as above by doing a refund of the balance to the Tenant

This article includes: 

• Create the expense invoice
• Receipt the rent and expense
• Landlord payment
• Rent already receipted with expense outstanding
• Receipt money against the outstanding rent

Create the expense invoice

1. Double click Tenancies from the side menu
2. Search for the relevant Tenancy using Search Text by Name, Code or Status
   1. Alternatively, find the Tenancy using Additional Options from the dropdown menu
   2. Or select a Branch if multi branch is set up on your CFPwinMan
3. Select the Tenancy
4. Click Invoice
   1. Click on a new line and select todays date
   2. Item - Select Sundry from the dropdown menu
   3. Description - Type a description. This will appear on the Landlords statement
   4. Amount - Enter a minus amount for the cost of the expense i.e. -£60
   5. Per - Single
   6. Send Options - Untick all options as you won't need to send a copy to your Tenants
5. Click Update
6. Click Yes to Do you want to update now
7. Click Close

Receipt the rent and expense

1. Follow steps 1 to 6 above to create the minus expense
2. Click Receipt
   1. Total Outstanding - This is the Rent amount LESS the negative Sundry amount
   2. Amount Received - Enter the amount which your Tenant has paid
   3. Inc - Press the Tab key on your keyboard to tick both Rent and Sundry amounts
   4. Send Options - Untick all options as you won't need to send a copy to your Tenants
   5. Click Update
   6. Click Close the receipt screen

Landlord payment

The rent less the expense will show as two items on the Landlord Payment.
For more information on How do I pay a landlord, click here

If you charge a management fee, it will still be charged on the full amount of rent.

Rent already receipted with expense outstanding

If you have already receipted the rent amount paid by the Tenant and have the balance of rent outstanding, you can achieve the same outcome as above by doing a refund of the balance to the Tenant.

Instead of raising the negative sundry invoice, do a Refund of Sundry for a positive amount.

1. Double click Tenancies from the side menu
2. Search for the relevant Tenancies using Search Text by Name, Code or Status
   1. Alternatively, find the Tenancy using Additional Options from the dropdown menu
   2. Or select a Branch if multi branch is set up on your CFPwinMan
3. Select Tenancy
4. Select Refunds
   1. Description - Type a description. This will appear on the Landlords statement
   2. Type - Select Sundry from the dropdown menu
   3. Payment - Select Internet from the dropdown menu
   4. Amount - Enter a positive amount for the cost of the expense i.e. £60
   5. Send Options - Untick all options, unless you want to send a copy to your Tenants
   6. Click Update
   7. Click Yes to Do you want to update now
   8. Click Close

You can then Receipt this money back in against your outstanding Rent.

Receipt money against the outstanding rent

1. Continuing in the same Tenancy Information, after closing Refunds in the step above, click Receipt
   
   1. Amount Received - Enter the amount of the expense, in this example £60
   2. Inc - Tick the corresponding box with the outstanding rent amount for the expense
   3. Send Options - Untick all options as you won't need to send a copy to your Tenants
   4. Click Update
   5. Click Close 

The Landlord Payment will show as above, but you will have a Debit and Credit on your Bank Reconciliation for the amount of the expense, which you can contra these against each other to clear them off.