deduction is being made against
Select Contractor that has submitted the invoice to be paid.
Landlord has no funds at present which means you will not be able to pay the contractor at this time but you will still be able to lodge the deduction.
Insert the amount of the contractors invoice and click the next action button
Confirm what is to happen in the accounts. If the ‘NRL Exempt’
box is un-ticked then the Landlord 'Supplier Payments (NRL Inclusive)' Account is debited. This triggers a further transaction, which credits the Landlord’s 'NRL Payments'
Account and debits the Company 'NRL' Account
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Landlords account
As the landlord has no funds the pending amount to pay is set against the Supplier Pending Payment Account
Contractors account
The corresponding amount is shown in the contractors Pending Payments account
Most agents will work on a 30 day payment of contractors invoices so this will be satisfied when the landlord has received rent.
Landlord has funds available
The supplier payments pending account on the landlord is now credited and marked as fully paid
The landlords Supplier payments account is debited
The contractors payment pending account is debited and marked now as fully paid
The contractor’s Main account is credited and they can now be paid
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Make a Transfer Between People
Select a Person (From)
Using the standard search criteria select the person from whose Main Account the transfer should come. When applying a transfer from a tenant, make sure you choose the tenant record for the correct property and tenancy that this transfer is related to.
Click Next to continue.
Select a Person (To)
Using the search criteria select the person to whose Main Account the transfer should be made.
Click Next to continue.
Enter the details of the transfer:
Amount (mandatory) Enter the amount of the transfer.
Transfer Type (This is automatically filled in and shows the people that the transfer is to be made between).
Enter a description of what the transfer is for, and when you are sure that the details are correct, click Finish to make the transfer. (If you need to modify any details, click Back to return to Step 2.
Effects in accounting:
Person From; Main account is Debited Person To; Main Account Credited
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Make a Manual Rent Transfer
Example: Paying the Landlord rent direct from the Tenants’ account.
Using the standard search criteria select the tenant that you are going to transfer rent from and click next.
Enter the amount to transfer in the Rent Transfer Details, and then click next
You will be required then to confirm the transfer then click finish. The rent will now be transferred to the landlord
Effects in accounting:
Tenants Outstanding Rent Account is debited Landlords Rent Collected Account is credited Make a Manual Rent Refund
Landlord returning rent (overpayment)
Using the search criteria find the tenant and click next. Select the amount of refund and click next then finish
Select the amount of refund and click next to confirm the transfer then finish to complete the transaction.
Effects in Accounting
Tenants Main Account is credited
Landlords Rent Collected Account is debited
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Make a Manual Float Refund
Returning Float Account Money to Landlord
Using the standard search criteria search for the Landlord to make the transaction on, tick the box next to their name and click on next
Enter the amount to be refunded click next then click finish to confirm the transaction.
The landlords Float account will be debited and his main account credited.
Effects in Accounting
Landlord Float Account is debited
Landlord Main Account is credited. The landlord now appears in people in credit.
Manage Landlord Float
Managing the landlords float amount alleviates the need to go to landlord details to change amounts. It enables an automatic journal to be posted that refunds or collects more float. If the landlord does not have a positive main account balance and the amount of float is increased, then the system will automatically transfer funds up to that amount when money hits the landlords main account.
Manage Landlord Float can be found under Accounting > Apply Transfer, this allows the amount of float required for a landlord to be changed.
After searching for the required landlord you will see a screen as shown below.
The screen shows the current float
landlord has a custom amount set of £200. This was set in landlord details. If now you require to change the amount to be held, the new amount should be set in the Custom Float Amount box.
When the new amount is set click on the next action button.
The system now resets the landlords float to be retained amount to the new figure and if more than the new figure is held then the system will refund the amount to the landlords’ main account.
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Make a Journal Transfer
Transferring money between different accounts, for example the transaction shown below is for transferring an amount from a tenant’s Main account to their Outstanding Rent account this will make rent due on the tenants account if for some reason the payment schedule is not picked up. This schedule may not have been set or the tenancy was signed after the first rent due date.
The first action, after selecting Make a Journal Transfer, which needs to be taken is to enter a description of the transaction. When this is done click on Create Person Posting.
Using the standard search criteria select the tenant who is going to have the rent deducted from their account, and click next on the action buttons.
The next screen will be the first part of the transfer process this is to select the account you are taking money from. In this case the rent which was paid by the tenant, but missed by the late signing of the tenancy, is still in the Tenants Main account. So it is from this account that the rent has to be taken, enter the rent amount in the appropriate box as a negative amount which will deduct the money from the selected Main account.
Click finish to continue.
On the postings screen you will see the first part of the transaction confirmed. To complete the transaction of rent transfer you will now need to select the person posting again
Once again you will need to search for the tenant using the standard criteria and click next on the action buttons.
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On the next screen you will need to enter the amount to add to the outstanding account.
When done click on the finish action button.
This time we need to tell the system where the money is going to. In this case we need to move it to the Rent Outstanding account for the Tenant
On the postings screen you will now see both parts of the transaction. To complete this transaction click ok. The transaction will now be complete and rent due will be ready to be transferred by Manual rent transfer.
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Manage Person's Auto Transfers
If the tenant, landlord or contractor has got a transfer that is due monthly (apart from rent or fees) auto transfers can be used. This may be for a monthly service charge to a contractor.
In the following example you will be shown the setting up of the auto transfer and how to manage them. First select the person that is the payee of the auto charge using the standard search criteria and click next on the action buttons.
On the next screen click the Add button to set up a new auto charge
When you have selected Add you will need to search for the recipient of the Auto Charge. Tick the box next to the name and click next
Enter a description of the auto charge, the amount to transfer the recurrence factor how long you want the Auto Charge to run for and click Finish. At any time you can return to this screen and amend or cancel the auto charge.
Cancelling will not delete the auto charge but it will leave you with the option to restore it at any time.
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Transfer Cancel. Selecting this cancel will stop the Auto transfer but it will remain on the system if required at a later date. The button now shows Restore. Clicking the finish action button will take you back to the menu screen.
Manage Auto Transfers by Property
This function will list auto charges by property
With the property selected a list of auto charges that are set to the property selected will be displayed. From here you can edit, cancel or restore by clicking on the Edit button. Filter by User Type, Transfer Person (Sender or Receiver and expired transfers)
Manage All Auto Transfers
This function will list all auto charges, cancelling and restoration of auto charges can also be done here by clicking on the edit button. Filtering is by User Type and if required tick the Expired transfers box to show those transfers that have ended.
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Guaranteed Rent
The system automatically operates a ‘Guaranteed Rent Scheme’. This means that when the rent due date is reached and the tenant has still yet to pay or funds or they are not yet authorised then a guaranteed payment is made to the landlord from the Company Guaranteed Rent Account. (View Account Activity/ View Company Accounts or View Branch Accounts. The agent must have a ‘Pot’ of money set aside for these payments.
When the tenant eventually pays the outstanding rent or it has now become authorised.
Instead of the usual route of rent money, because the landlord has already been paid, then the money paid by the tenant is transferred to the Company Rent guaranteed account. The money is transferred to the Company Guaranteed Rent Account to replace the money already paid to the landlord.
Activate the Functionality
To activate the Guaranteed Rent Functionality go to Control Panel>Object Types>Tenancy Service Types.
Click the add button to create a new service type or open an existing one.
Name the new service type something like Fully Managed – Rent Guaranteed
Tick the rent guaranteed box and in the Fee put a percentage that you as an agent are charging
This service type is now available to be set up per landlord
Setting the Landlord Charge for the Guaranteed Rent Service.
If an Agent wants to charge a landlord a monthly fee for the rent guarantee service then the system will apply this charge in the same way as it applies the rent collected management fee.
A new income type has been added called Guaranteed Rent Fees. This income type has been added to all Agents and cannot be removed. It can however, be re-named in Control Panel>Company Settings>Modify Company Details. On applying the charge to a landlord the transaction description appears as:
Guaranteed Rent Fee Charge at 2.50% + VAT
If the Agent applies a different % charge to some landlords then this can be set by going to Modify Landlord Details – Management Fees.
The system does not record the history of any changes to the percentage charge set and it’s not possible to set a different percentage to be applied from a future date.
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How the System Makes a Guaranteed Rent Payment.
System: Makes rent due.
The Tenants account is debited for the Rent Due
Tenant: Insufficient authorised/cleared funds.
Because the tenant has insufficient funds the money must be drawn from the Company/Branch Rent Guaranteed account
System: Debits the Company/Branch Guaranteed Rent Account
System: Credits the landlord’s Rent Collected Account
Landlords account is credited with the rent due. Management fees and rent guaranteed fees are deducted
Landlord: Account transaction appears as: Guaranteed Rent Payment for '71 High Street, CF24 4ET' from 'William Jones' for period 01/04/2009 to 30/04/2009.
Tenant: Account remains unaffected they still owe rent in the normal way
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Tenants Rent covered by Guaranteed Rent?
A Tenancy Service Type filter can be found in the Money Owed Chase View in order to only display the tenants whose landlords have been paid Guaranteed Rent.
There is also a report called Guaranteed Rent Balances that provides a list of all tenants.
Tenant Rent Paid
When the tenant pays their rent money in or funds are now authorised the following happens in the system:
System: Refunds Rent Guarantee account
Tenants Rent Outstanding Account Is debited
Company Rent Guaranteed Account Credited
The First rent due on a New Tenancy is not covered by Rent Guarantee. Therefore the system will not instigate a Guaranteed Rent payment to the landlord if a tenant fails to pay the first month’s rent on a non-renewal tenancy.
Covering the Real Money Required to make Guaranteed Rent Payment.
The balance of the Company /Branch Rent Guarantee Account at any point in time is the total amount of Rent Guaranteed transactions made to Landlords. In order to comply with good practice, this amount of money should be transferred into the Client Bank Account from the Letting Agents Office or alternative account.
Guaranteed Rent Balances Report.
Shows all tenants who owe Rent
Shows all Landlords that have had funds transferred from the, Rent Guarantee Account.
Shows the number of days the rent has been outstanding.
This will be useful where the Letting Agent must report to their insurance company if a tenant’s rent has been outstanding for more than 30 days.
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