How to do Rent Free or Rent Reduced Periods

Palace takes into consideration that from time to time you may need to do a rent free or rent reduced period. There are several ways of doing this in Palace, but we suggest the following as it keeps all the rent records correct and looks tidy on the owner Statement.

Using the following allows you to either still collect a management fee or not up to you. The parts where you either zero out the fees or not will be highlighted below.

Instructions - Rent Free Period (This takes the money from the Owner and puts to against the tenant as rent and back to the owner)

  • Go to transactions, click on the drop down arrow down the left hand side
  • Select Payment - Expense, then click on the >>
  • Select the property that this is relevant to.
  • Select the expense category (if you need to enter a new one click on the ... and add one in)
  • Enter in the amount of the rent free period i.e if the rent free period is for one week, then you enter the amount of one weeks rent)
  • Enter a reference e.g One weeks free rent for the tenant.
  • Zero out the fees, if you do not want to charge the owner a fee (remember you will be getting the management fees on the rent, unless you decided not to)
  • Enter any comments as needed and click OK
  • This has taken the money from the Owner.
  • You can now receipt the tenant for the rent as you normally would.

NOTE: If you DO NOT want to charge the owner a management commission for this transaction, then you must go into the Property and ZERO out the management fee, before you receipt the tenant rent, then go back into the Property afterwards and put the commission back in.

NOTE: This will then show perfectly on the Tenant Rent Details Report and the Owner statement will show money going out and rent coming in so they will counteract each other.

There are two suggestions for handling rent reduced periods

Leave the rent amount as it is, tenant pays the reduced amount and the Owner pays the other amount. i.e do a payment expense from the owner and receipt into the tenant. You then get the same commission as you would normally get. (Follow the instructions above)

Doing a rent change for the reduced amount and setting another rent change for the full amount on the date that the rent goes back to normal. (Follow the instructions on rent increase).

 

Related Links:

 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

Article is closed for comments.