Overview
If a tenant repays rent that was previously settled through a Rent Guarantee claim, the repayment must be returned to the insurer. To ensure the tenant's arrears are cleared correctly, and no management fee is charged, the payment should be assigned against the property with no management fee.
This process creates a credit on the landlord ledger, which can then be used to refund the insurer by raising a landlord expense. The resulting ledger transactions provide a complete audit trail of both the tenant repayment and the insurer reimbursement.
Once the process has been completed, the landlord ledger will display:
An income transaction representing the tenant's repayment.
An expense transaction representing the refund to the insurer.
These entries balance each other and provide a clear record of the movement of funds.
Step 1: Allocate the tenant repayment
Navigate to Bank > View bank lines or Financials > Unassigned bank lines
Locate the transaction
Click the edit pencil icon
Expand the Category dropdown and select The property
Expand the Subcategory dropdown and select Rent in 0%
Enter a relevant description
Click Submit
This allocation will:
Apply the payment to the tenant's outstanding arrears.
Transfer the funds to the landlord ledger.
Prevent a management fee from being charged.
Create a credit balance on the landlord ledger.
Step 2: Create a contractor record for the insurer
Before a refund can be issued, the insurer must be listed as a contractor in the system.
If a contractor record has not already been created, follow the process outlined in this article - Contractors - Adding contractors
Note: This step only needs to be completed once for each insurer.
Step 3: Raise a landlord expense
A landlord expense must be created for the value of the tenant's repayment. To create a landlord expense:
Navigate to Financials > Landlord Deductions.
Click + Landlord Expense.
Fill out the form with details of the invoice:
Select the insurer as the contractor.
Enter the repayment amount.
Add any relevant reference information, if required.
Click Submit.
Once the deduction has been submitted, be sure to select the tick under Include in Ledger and Statement. This will deduct the funds from the landlord's balance. After the expense has been deducted from the landlord, it will then be available to pay the insurer from the Contractor Summary page.