Sometimes a property is sold but you are keeping the management with the new owner. In the instructions below we suggest the best way to handle this.
NOTE: If the property has been sold and you have lost the management, some of the instructions below still need to be followed.
NOTE: These are the instructions for handling this scenario in Palace, you still need to understand how the Residential Tenancies Act handles this process.
Other things to note:
Please note the following details that you may need to know before you start this process
Settlement date for the property
Who is getting the rental money i.e know which portion of rent is going to the old owner and what portion to the new owner? The solicitor may do this for you.
Is the Property Manager for the new owner going to be the same as the old owner? Who is paying for any outstanding invoices?
New Owner details if staying with your company
When is the money due to be paid out to the old owner? (settlement date or at end of month as normal?)
Instructions for Duplicating the Property
- Enter in the New Owner Details and the bank account
- Go to the property list, ﬁnd the property, click on the drop down menu next to ‘edit’ and select the option Duplicate
- Find the new owner in the pop up box and click Save
- A new property will be created; it will be displayed at the top of your property list with an * in front of the sort code
- Go back to the old property and click on edit. Put a zz in front of the street name (This will take the property to the bottom of the property list, to wait for you to archive it)
- Make the property inactive and
- Go back to the new property, and click on edit. Take the * out of the sort
- Link the property to the correct Owners bank account
- Make other changes as needed and save.
Instructions for Duplicating the Tenant
- Find the tenant in the Tenant list and click on Edit
- Put in the vacate date (which is the settlement date)
- Click save, say no to making the property available, no to remove ‘Scheduled Inspections’, but a
good idea to say yes to putting the owners funds on Hold.
- You are now back in the tenant list, click on the drop-down menu on the tenant and click on Duplicate.
- Select the new property out of the list, click
- A new tenancy will be created; it will be displayed at the top of your tenant list with an * in front of the sort
- Go back to the old tenant, and click edit. Put a zz in front of the sort code (This will take the tenant to the bottom of the tenant list, to wait for you to archive it, and click Save & Close)
- You can now see if there is a tenant refund needed (Money to be paid to the new owner from the old owner) or if the tenant will owe arrears to the old owner. Check the ﬁgures using the Summary of Rent
- PLEASE NOTE:
Now go back to the new tenant, click edit, take out the *, take out the ‘Vacate date’ and change the ‘Start date’ to be the day after the Settlement/Vacate date.
Now ‘Delete’ past ‘rent changes’ from the system that are not the same as the new start date.
‘Add Rent Change’ - ‘Rent change date’ must be the same as the new ‘Start date’ at the same ‘Rent rate’ as it was on the previous tenant’s record.
Click on ‘Save & close’.
If needed make and adjustment for a few days at the current rent rate then add the rent change for the full week however many days later to line up with the tenant’s week, as if they are making a part payment to align rent days.
- If there is an overpayment of rent (i.e. the tenant shows a refund is due), the best way to handle it, is to reverse the last receipt that the tenant paid and re receipt it, putting one amount into the old tenant and the remainder into the new
- If the tenant is in rent arrears, then you need to make a note that the tenant needs to pay back the arrears into the old owner. Check that the solicitor has not already taken this into consideration in the settlement payment. Alternatively set the new tenant record's start date to the day after the Paid to date of the old tenant
NOTE: You have now created a new owner, property and tenant. You will be able to archive the Owner and Property once you have rolled month end. You may be able to archive the tenant straight away if all funds are cleared.
Also Note: You need to check if there is any current tenant debt i.e. water rates. These will also need to be cleared with transactions between the two tenant records.