Add a dedicated contractor for Rent Guarantee deductions
Rent insurance is typically treated as a source of business income, with payments to insurers treated as business expenses. To simplify tracking these, it is recommended to create a contractor specifically for rent insurance.
Suggested configuration:
Contractor name: Your company name followed by "Rent insurance"
Bank details: Business account used to pay the insurer
Adding a series of deductions against a property for insurance payments
To charge landlords for rent insurance, you can add a series of deductions against a property. Deductions should be added as a series of landlord expenses, paid to the business account you pay your insurer from, using the 'Rent Guarantee' contractor.
For guidance on how to add a series of deductions, please see the article below:
Landlord deductions - Adding a regular payment
How to assign payments from insurers
When payments from Insurers are assigned, you can mark them as 'Rent Guarantee Payments'. This will ensure the tenant arrears remain unchanged, but you still take a management fee as if it were a rental payment.
For a single payment from the insurer:
Navigate to Financials > Unassigned lines.
Locate the relevant transaction.
Click on the edit pencil icon.
Select a relevant Property as the Category.
The subcategory will automatically populate with ‘Rent in’ using the % management fee assigned in the property record.
Assign the payment to the relevant rent period.
Select the checkbox under the subcategory dropdown marked ‘Rent guarantee payment’.
For a bulk payment from the insurer for more than one property:
Navigate to Financials > Unassigned lines.
Locate the relevant transaction.
Click on the bank line ID.
Once directed to the ‘Split lines’ page, enter each separate payment amount in the Amount box in separate rows.
For each payment, select the appropriate Property as the Category.
The subcategory will automatically populate with ‘Rent in’ using the % management fee assigned in the property record.
Assign the payment to the relevant rent period.
Select the checkbox under the subcategory dropdown marked ‘Rent guarantee payment’.
The Tenant Ledger and Landlord Ledger
Tenant ledger
Rent guarantee payments appear in red text.
These payments do not reduce tenant arrears.
Landlord ledger
Payments appear as standard rent income, including your management fee.
These entries are included in landlord statements in the same way as rent received from tenants.
Generating reports of Rent Guarantee payments
Users can generate an export of landlord deductions in any given period. That export can be filtered to highlight only rent guarantee payments. To do so:
Navigate to Admin > Exports.
In the 'Financial' section, select 'Landlord deductions'.
Select the date range.
Apply the filter:
'Date included in invoice'
Generate the export.
Filter the 'Contractor' column to only include the 'Rent Guarantee' contractor.