Note: It is strongly recommended that landlords are not paid where properties have negative arrears balances. For further guidance on how to check for rent overpayments, please click here.
If rent has been manually assigned to the wrong property and the incorrect landlord has been paid, there are two ways to resolve this.
1. The funds have been returned by the landlord
1.1 Assign the returned funds
Once the landlord has returned the funds and they are on the Unassigned lines page, they should be assigned against the property that was paid incorrectly as Landlord other income.
1.2 Return the management fee charged in error
Navigate to Financials > Double entry and add the following adjustment.
Within the Money out section, please populate the fields as below:
Category = The incorrect property
Subcategory = Landlord fee refund
Adjustment value = The full amount of management fee taken in error
Within the Money in section, please populate the fields as below:
Category = The incorrect property
Subcategory = Landlord other income
Adjustment value = The full amount of management fee taken in error
Include a suitable description and click Add adjustment
1.3 Recoup the funds from the landlord who was paid incorrectly
Navigate to Financials > Landlord deductions
From the top right corner, select the dropdown arrow and choose Business float (loan)
Select the relevant property (the incorrect property)
Select today's date
Type a suitable description
Enter the amount to claim back (total rent amount)
Click Submit
Locate the deduction just created and select Include in ledger and statement
This will take the funds from the incorrect property's landlord balance.
1.4 Assign funds to pay the correct owner
Navigate to Financials > Double entry
Within the Money out section, please populate the fields as below:
Category = the incorrect property
Subcategory = Business float out
Adjustment value = The full amount of rent
Within the Money in section, please populate the fields as below:
Category = The correct property
Subcategory = Rent in
Adjustment value = The full amount of rent
Include a suitable description and click Add adjustment
1.5 Amend the tenant ledger
Navigate to the tenant ledger of the incorrect property
Click the dropdown arrow next to Update due dates, then select Single due date
Set the start and end dates to the current date
Enter the amount as the amount attributed here in error
Optionally, add a description advising this is a correction to the ledger
Click Submit
2. The funds will be taken from the landlord's next payment
If the landlord does not return the funds directly, then users must wait until they next receive rent before the funds will be recouped.
2.1 Return the management fee charged in error
Navigate to Financials > Double entry and add the following adjustment.
Within the Money out section, please populate the fields as below:
Category = The incorrect property
Subcategory = Landlord fee refund
Adjustment value = The full amount of management fee taken in error
Within the Money in section, please populate the fields as below:
Category = The incorrect property
Subcategory = Landlord other income
Adjustment value = The full amount of management fee taken in error
Include a suitable description and click Add adjustment
2.2 Recoup the funds from the landlord who was paid incorrectly
Navigate to Financials > Landlord deductions
From the top right corner, select the dropdown arrow and choose Business float (loan)
Select the relevant property (the incorrect property)
Select today's date
Type a suitable description
Enter the amount to claim back (total rent amount)
Click Submit
When this owner's next rent payment is received, the deduction created here will be included in the landlord payment run, and the funds will be recouped to the business float. The landlord's next statement will show that the funds have been recouped.
2.3 Assign funds to pay the correct owner
Navigate to Financials > Double entry
Within the Money out section, please populate the fields as below:
Category = the incorrect property
Subcategory = Business float out
Adjustment value = The full amount of rent
Within the Money in section, please populate the fields as below:
Category = The correct property
Subcategory = Rent in
Adjustment value = The full amount of rent
Include a suitable description and click Add adjustment
2.4 Amend the tenant ledger
Navigate to the tenant ledger of the property that was paid incorrectly
Click the dropdown arrow next to Update due dates, then select Single due date
Set the start and end dates to the current date
Enter the amount as the amount attributed here in error
Optionally, add a description advising this is a correction to the ledger
Click Submit