Renting residential or commercial premises is the same service as any other. Accordingly, it should be paid on time, and this payment should be written in the relevant records. Both landlord and tenant need a receipt for rental to track their financial flows. Let’s talk in more detail about the features of this type of document, how to make a receipt for house rent, and how to put it into practice.
What Is a Rent Receipt?
In business, any transaction or arrangement should be formally confirmed in writing. In the case of leasing various premises, this function is performed by a rent receipt. It indicates that your tenant has made the appropriate payment for the agreed period, and you have received it. It does not matter in what form the payment was made. Your customers can pay you with cash, checks, bank cards, or money orders.
What does a rent receipt look like? In overall look, it resembles standard commercial invoices. Since it confirms that you have received payment, the description of goods and services should show rent. However, landlords may charge other fees, such as a pet fee or security deposits. All such information needs to be reflected in the document. Accounting for all receipts and using a receipt template to confirm payments is necessary for:
- cash flow control;
- convenient record keeping;
- reporting to local or state authorities;
- resolution of disputes and conflict situations.
Do not neglect the use of such forms, as they can really come in handy for you. To not issue them manually, use Invoice Maker by Saldo Apps, which will help you streamline the whole process.
When Should Receipts for Rent Be Issued?
This format of documents is proof of payment for services. Accordingly, landlords should fill out the paperwork and hand it over to tenants after receiving compensation. The exact date depends on personal agreements between the parties; it can be either the month’s beginning or the semester’s end. The main thing is to comply with the terms of a contract. In case they were violated, late payment fees should be provided.
At the same time, in some countries, there are certain rules approved by the government, which should be followed when renting out premises. For example, in New Zealand, receipts should be handed over to payers no later than 72 hours after the money has been credited to your account. If you were paid in cash, you need to confirm receipt in writing right on the spot. Therefore, be sure to check local laws and study the standard examples of rent receipts adopted in a particular region.
How to Fill a Rent Receipt?
You can write out such confirmations manually, but it is best to use specialized software and ready-made templates, as they allow you to create documents literally on the go. What to write on a rent receipt? For your file to meet all the requirements, it should contain the following information:
- file creation date;
- date of receipt of payment;
- lease term;
- tenant’s contact details;
- landlord business info, including the exact address of a property;
- full list of payments: rental, security, pet, late fees, etc.
- the sum of compensation and the payment method;
- the signature of the person who issued the receipt.
The process of filling out these types of forms is quite simple, so you may not need how to write a receipt of payment example. Just list those services and the period for which your tenant paid. Despite their simplicity, these documents are essential for landlords or property managers as they allow them to clearly control all cash flows, especially if they have several properties they rent out.
Follow Techdee for more!