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How to Give a Tenant a Rent Credit
Overview
There are two ways to give a tenant a rent credit. They differ in who bears the cost and whether management fees are charged.
- Option 1: journal the credit. The credit comes from the owner's money and is treated like a rent payment, so the management fee is still charged. Use this when the owner is covering the credit.
- Option 2: reduce the rent. The rent is lowered, so no money moves and no fee is charged on the reduced days. Use this when the agency shouldn't earn a fee on the credit.
Option 1: Give the credit with a journal
1
Journal the credit from the property to the rent
In the Financials menu, click Journalling, then click Create Journal Entry. Set the source to the property's Property Payable and the destination to the tenancy's Tenancy Rent. Enter the credit amount (daily rent × credit days), add a comment, then click Review and Confirm.
2
Check the rent ledger
Open the property, click Tenancy Overview and scroll to the Rent Ledger. The credit now shows as rent paid.
Note: Only Finance person and Principal users can see Journalling. The property needs enough money in its Property Payable ledger to cover the credit. The credit is applied to the current rent period (today's date), so it can't be backdated.
Option 2: Reduce the rent instead
1
Add a rent reduction
Add a rent reduction on the tenancy and skip the journal. Follow Reduce the rent instead in Change the Rent, and turn on Is this a temporary rent reduction? if the rent should return after a set date.
Frequently asked questions
What's the difference between the options?
Use a journal when the owner is covering the credit and the agency should still earn its management fee. Use a rent reduction when the agency shouldn't earn a fee on the credit days, or when the rent is lowered for a longer period.