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.
Step 1. You have a monthly lease with a rent amount of $500 that starts on the 1st Jan, your payment periods would look like this:
Step 2. Your tenant pays $500 in Jan, which is great!
This payment period is "Complete", mark it as such and the system will move to February.
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).
Step 4. If the tenant is late, and it’s now March, we will show the outstanding balance of $750.
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.
Tags: Payment, rent collection, partial payment, partial rent, manage income, tracking rent, tracking income, overpaid rent