There are a couple of ways of doing this. We suggest the first method as it keeps all the rent records correct, looks tidy on the owner statement, and allows you to collect a management fee should you choose to.
Method 1: Rent free period (allowing you to collect commission) essentially takes money from the owner and records it as rent against the tenant (which in turn goes back to the owner less commission). To do this, we do an Expense Payment transaction, and then a Rent Receipt transaction.
- Click on Financial, and then click on Transactions
- Click on the drop-down arrow and select Payment - Expense then click Generate
- Select the relevant Property.
- Select the Expense category
- Enter in the amount of the Rent Free period (if the rent free period is for one week, then enter the amount of one week's rent).
- Enter a reference (eg. Free rental period)
- Zero-out the fees so the owner is not charged a fee on this transaction (remember you will be getting the management fee on the rent)
- Confirm and Process. This will deduct money from the Owner account
- Once that is done, you may then receipt the rent the money against the tenant. This will update the tenant's paid-to date essentially providing a week's free rent,
NOTE: If you DO NOT want to charge the Owner a Management Commission for the rent receipt transaction, then you must go into 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.
Method 2: The second method of providing a rent free period involves create a rent change for a zero dollar amount. Eg. if a tenant pays $250 a week, you'll create a rent change period so it'll look like the following:
1st May, $250/week
8th May, $0/week
15th May, $250/week
To see how to apply these rent change records, view the help file on applying rent changes.
There are two suggestions for handling Rent Reduced periods
Method 1: Leave the rent amount as it is. The tenant pays the reduced amount and the Owner pays the remaining amount. Eg. Do a payment expense from the Owner and receipt that amount as rent against the tenant. You then get the same commission as you would normally get.
Method 2: Do 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. View the help file on applying rent changes.