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How To Write Off Unpaid Rent (Cash-Based and Accrual-Based Accounting)

(Simple Method) What to do when a tenant moves out with outstanding charges not covered by their deposits.

Samuel avatar
Written by Samuel
Updated over 5 months ago

Overview

Sometimes a tenant moves out without paying their overdue balance. When that happens, you need a simple way to record it and move on.

In this guide, we’ll show you how to write off an unpaid overdue balance as a bad debt expense in DoorLoop.

This method works whether you’re using cash-based or accrual-based accounting. That said, it’s always smart to check with your accountant for advice on your specific situation. Learn what the difference is between cash vs. accrual accounting.

Note: The following shows how to forgive debt on a tenant's ledger by issuing a credit on the tenant's lease for any balances owed on the lease.

Optional - Find All Open Charges on the Lease

You can skip this step if you know which lease has unpaid balances.
​Continue to Step 1.

In order to clear rent that is uncollectible, you’ll need to check what all the open charges are on the lease. You can do this by going to the reports and viewing the A/R Aging Detail by Account Report.

  1. To view the open charges that a tenant still owes on a lease, click Rentals on the main menu and then click Properties.

  2. Find and click on the Property with the uncollectible rent charges.

  3. To view all the ledger accounts that currently have an open charge on this lease, first, click the Reports tab.

  4. Scroll down to the Who Owes You section and click on A/R Aging Detail by Account.

  5. Filter it to the one lease with the open charges.

  6. You will now see all the open charges for that lease. Make note of these. (If you need to view other leases, just change the Lease field.)

Issue a Credit for Bad Debt on the Lease

  1. To write off bad debt on the lease, click Leasing on the main menu and then click Active Leases.

  2. Find and click on the Lease that requires the credit.

  3. On the Overview page, click on the Transaction tab.

  4. Click the Issue Credit button.

  5. For the Category dropdown, select the account you are applying the credits to. For example, if it’s for rent, select rent.

  6. Enter the amount of unpaid charges in the Amount field.

  7. Click Save to finish.

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Disclaimer

The information provided is not offered by a licensed accountant, should not be considered accounting, financial, or legal advice, and is provided (and intended) for general informational purposes only. Do not rely on the information provided; rather, please verify applicable accounting laws and regulations independently. This information should not be considered a substitute for professional advice and does not offer Generally Accepted Accounting Principles (GAAP). The author and publisher are not liable for any damages or losses resulting from reliance on this information.

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