Welcome to our guide on how to refund rent to a tenant
e.g. rent paid by the council and a refund was requested or the tenancy fell through.
If the rent has not yet been locked into a statement:
- Un-allocate the payment from the Rental invoice.
- Create a refund to the tenant by selecting More>Refund.
- Allocate the payment to the refund.
Support Article - How to create a refund when a tenant has overpaid their rent
If the rent has been locked into a statement:
Landlord was paid - £900 for the rent and charged £100 management fee
We will need to:
- Refund the tenant £1000 for mistakenly paid rent
- Charge the landlord £900 for the overpayment that was transferred to him when the rent was in the statement.
- Refund the landlord £100 for the management fee that was charged on the refunded rent.
- Create a credit note for tenant for amount £1000 with description: Collected by mistake on {date} etc.
- Create a refund for tenant for amount £1000
- Apply the credit note to the refund
- Banking - Reconcile outgoing £1000 to the council/tenant with the refund.
- On the property page create a manager credit note to the owner for for the mistakenly charged commission e.g. the amount £100 with description: Return Mgt . Fee for mistakenly collected rent {date} etc.
On the next LL statement, there will be a deduction of £1000 for the rent mistakenly paid last month
There will also be a credit of £100 for the mistakenly charged mgt. fee, so in total there will be a deduction of £900 on the statement.
If the landlord transferred the funds back you can record it as an owner deposit. This will adjust the owner balance to reflect the incoming funds.
- Create a non rent invoice for 1000 in the ledger write rent with the description: Mistakenly allocated Sep rent {date}
- The tenant will now be outstanding the Sep rent again.
Still having trouble?
If you encounter any issues please contact our support team.