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Automatically Apply Prepaid Rent to Upcoming Rent Charges With Recurring Credits

Set up a recurring credit so a tenant's prepaid rent is automatically applied to their rent charge each month.

Written by Samuel

Overview

If a tenant prepays several months — or even a full year — of rent, setting up a recurring credit ensures the prepaid funds are applied correctly each month. This helps keep your accounting accurate, simplifies rent tracking, and prevents errors when reconciling payments.

Learn more about Issuing a Recurring Credit on a Lease.

Note: This process only works if the tenant's prepaid rent deposit has already been collected. If you haven't done this yet, see Set Up Prepaid Rent When Creating a New Lease or Set Up Prepaid Rent on an Existing Lease first.

The Steps

  1. To apply prepaid rent to upcoming charges via recurring credits, click Leasing > Leases on the main menu.

  2. Find and click on the lease you need to apply recurring credits to.

  3. On the lease, click the Rent tab and then click the Recurring Credit button.

  4. From the Recurring Credit window, uncheck the option for “repeat until the end of the lease" and set the Start Date and End Date for the recurring credit and the Frequency. For example, you're holding $5000 as Prepaid rent, where rent is $1000 per month. Set the Start and End date to equal 5 months of rent.

  5. Next, set the Account as Prepaid Rent under Liability. For the Amount, enter the amount that each month’s rent will be.

  6. Click Save to finish.

This will create a credit each month (similar to a withholding deposit) and apply that to the rent charge while deducting the amount from the Prepaid Rent deposit.

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