What is a Tenant Ledger?
A tenant ledger records payments made from a tenant to a landlord. They include payment details such as payment type, date of payment and amount paid. They help landlords by providing information about their investments or evidence when they have a tenant dispute. In addition, they help tenants by supplying documentation for rental and credit applications. Tenants can request them from a landlord or property manager.
Tenant ledger definition
A tenant ledger is a document collating rental payments over time. These can be payments made directly from a tenant to a landlord or through a property manager. It includes rental fees as well as other costs, such as water. Tenant ledgers can be digital or physical documents. A tenant ledger is also known as a lease or rental ledger.
What does a tenant ledger include?
A tenant ledger can include different details depending on who makes it. Tenant ledgers contain details about payments made. They require direct payment details like date of payment, amount paid and type of payment. They also need administrative information such as the receipt number, payment received date, paid-to date and paid-from date. Some tenant ledgers contain property details such as lot size, number of bedrooms and zoning. Finally, tenant ledgers include rental arrears if the tenant has been behind on payments. Rental Management Australia’s experienced property agents know what to include in an effective tenant ledger.
Why should I get a tenant ledger?
You should get a tenant ledger, as it benefits both landlords and tenants. For a landlord, it is a helpful reference document. The tenant ledger provides transparent information about expenses and the income derived from their investment. It helps with future planning and budgeting. For tenants, a tenant ledger can be beneficial for future rental applications. Showing records of regular rental payments is favourable. In credit applications, tenant ledgers can provide evidence of payments being made on time. Tenant ledgers can also be important evidence in rental disputes. They can provide documentation for landlords when they evict tenants who have missed rent or tenants trying to prove wrongful eviction. Having your tenant ledger in the hands of an experienced property agent is often the smoothest option.
Do I need a tenant ledger?
Tenant ledgers are legally required for landlords to have. They are sometimes necessary for taxation purposes. They can be requested if there are any legal issues with the rental situation. A tenant ledger must be provided to a tenant on request.
How do I get a tenant ledger?
A tenant ledger is easy to access. A landlord will have a tenant ledger if they are renting to a tenant directly. If using a property manager, they will have it and share it with the landlord when required. A tenant can request a copy of the tenant ledger from the relevant party.
How to make a tenant ledger
Tenant ledgers are typically made on the computer. Specialised software is available for making tenant ledgers more easily. They can also be created manually on a spreadsheet. This will be more time-consuming. When making a tenant ledger, you must decide which details to include. Contact RMA and let our experienced property agents take care of the tenant ledger for you.