How to invoice for holding deposit and then Rent to let a proeprty

[adnw]

hi

im going to setup a new quickfile account for my property rental business.
i currently have it setup all over the place.

This is what i want to do for a new tenant, do i have the process below correct?

Take a Holding Deposit for the property they want to rent. This is usually paid with Strips but sometimes a bank transfer.

I then perform credit checks.

I then setup a direct debit plan via gocardless for the monthly rent which takes a payment at the end of the 1st month - to pay month no2 in advance.

I then take 1x month rent in advance (minus the holding deposit already paid). This is usually paid via bank transfer but could be stripe.

Is this how i would set tat up in quickfile?

When i get a new tenant:

1. setup a new customer

2. send an invoice for the full 1x months rent in advance, but request £100 holding deposit rather than the full amount.
   Then when the £100 is received tag is against this invoice.

3. Setup a recurring invoice somehow and link it to gocardless to take out 1x month rent in advance on the last day of the first month.

4. request the remainder of the first invoice (minus the £100 holding depsoit) and tag this against the invoice to show its paid in full.

Does that look correct, or should it be done slightly different?

thanks

[QFMathew]

Hi @adnw

This sounds all OK to me, although it may be worth running it past an accountant just to be sure it’s recorded all correctly (I’m not one).

I did also find the below post in relation to holding deposits, which may be helpful:
Accounting for Rental Protection Service (RPS) Deposit

[adnw]

thanks

that link is a different subject all together, however it is something i need to do in quickfile so thanks.