Tenant in arrears and rent insurance

How-to
1

My tenant should pay middle of every monthly but is now in arrears. Most of the rent is paid by council, some by rent insurance and there is still some shortfall. How should I account for this?

Oh by the way management agent takes off their fees too which I suppose is a separate purchase monthly?

2

Hello @appy

You could create a merchant account for this (Holding Account)

Example

£1000 rent invoice on the client account

  • £700 paid by council, tagged in your bank as a bank transfer to the Holding account

  • £200 paid by rent insurance, tagged in your bank as a bank transfer to the Holding account

  • £100 paid by the client, tagged in your bank as a bank transfer to the Holding account

  • Pay off the invoice in full using the holding account

  • £100 Paid to your management agent for their fees, tag this to a purchase invoice in your main bank account.

3

@QFSteve - thank you. Any way of seeing the total apportioned amount paid across the year by council, insurance and client?

4

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5

Hello @appy

Any way of seeing the total apportioned amount paid across the year by council, insurance and client?

Only by searching on the holding account for something unique in the Council and Insurance bank transfers

For example
if the money your receive from the council has a reference search by that
If the money your receive from the insurance has a reference search by that

Deduct these from the amount invoiced to the client to get the clients portion