How to set up Guaranteed Rent

Guaranteed Rent Procedure 

Guaranteed Rental Payments for Owners

First you will need to do some set up so that it will work for you. You need to set up two sets of Owners and Properties. One under your company name and one under the actual Owner. The tenant is connected to the Company Owner and the actual owner is only used for the payout.

Setting up for Guaranteed Rental Payments

• Set up your property management company as an Owner(PMC) or just call it (Owner Name, Guaranteed Rent)
• Then, set up all properties under this owner (NO COMMISSION)
• Now, set up all tenants under these properties
• Then, set up the Investor/Owner as an owner with their own bank details (as normal)

• Under each Investor/Owner, set up a duplicate property (put a Z in front of the sort code so they go to the bottom of your list).
• There are NO tenants associated with the Investor/Owner properties

• Now set up a Ledger – Called Guaranteed Rent Management Commission

Guaranteed Rental Payments for Owners

Rent receipts should be processed as normal under the correct tenant – this money gets receipted into the property management’s owner account. Same with any tenant charges or tenant debits. Handle the tenant completely as normal.

Creditor Invoices/ Work Orders - If the Owner/Investor is paying for the invoice then process through their property, (the one with no tenant). This will mean they will show as a negative during the month but then the money you receipt in will cover it.

Water rates will be charged through the correct owner as normal. BUT the charge tenant debit needs to be set up against the tenant. 

Just Prior to End of Month

Do a Payment Owner out of the Guaranteed Rent Owner for the full amount of the Guaranteed Rent. You may need to generate single transactions for each property to achieve this.

Then, do a Receipt Owner into the Actual Owner for the full amount of the Guaranteed Rent.You may need to generate single transactions for each property to achieve this.

Now you have moved the rents from the PMC to the actual owner ready for payout as normal.

At the end of each month, you will need to also do a Payment Owner and Receipt Owner for any money paid in by the tenant for Water.

Process your Month End as normal.

If the Payment is short or more than what the owner should be getting

This won’t matter as you will only take out of the Guaranteed Rent owner the amount he should be getting. So if there is more than that it will simply stay there.

If it is short you can then top up the Guaranteed Rent Owner from your trading account.