How to Write a Rent Receipt?
Have you decided to invest in real estate? Have you just gotten your first tenant? If so, you’ll need to know how to write a rent receipt. Rent receipts are crucial for both you and the tenant. They help you track your income from rent, and they help your tenant track their expenses. Every rental agreement should come with rent receipts. Learn how to write them here!
Here’s What We’ll Cover:
What is a Rent Receipt?
A rent receipt is a document that is provided by a landlord or property manager to a tenant. It acts as proof of payment for money received for rent. Rent payments can be received in a number of ways.
- Cash payment
- Check payment
- Credit card payment
- Money order
No matter the type of payment, a receipt should be issued.
Issuing a Rent Receipt
When you give a rent receipt is crucial. If you’re receiving rental payments, review the steps below on issuing a receipt for the payment:
- Collect the payment from your tenant.
- Write, or generate, the rent receipt and sign it.
- Provide a copy to your tenant and keep one for yourself.
If you’ve never written a rent receipt before, keep reading to learn how to.
How to Write a Rent Receipt
If you’ve never written a rent receipt before, you can look online for a rent receipt template. When looking at templates, it’s important to make sure the following information is present:
- The date of the payment
- The rental period the payment is for
- Which rental property the payment is for, if you own multiple
- The tenant’s full name
- Who received the payment
- The property address
- The payment amount
- The method of payment
- The remaining balance for the lease
- Late fees, if there have been late payments
All of these should be included on a rental receipt. Any other important information can be included, as well. This can be information that you find valuable, or that the tenant finds valuable. Often, you’ll find that a rent receipt template will allow you to modify the fields on it.
How to Send a Rent Receipt
Providing copies of rent receipts is very important. There are several ways to go about this. If the tenant pays in cash, writing a receipt is easy to do. For handwritten purposes, there are many books that have templates in them. These can contain a blank template, a cash receipt template, or a simple receipt template with just the necessary details.
If you accept electronic payments, the service you use will keep an electronic record. Many times, an online payment portal will give you easy receipts. They’ll track everything for you, including the payment method and the amount. They will provide copies to the landlord and the client automatically, as well. Additional copies can be printed at any time, too.
Should Receipts Be Given for All Payments?
Generally speaking, yes. If a tenant is paying you for your property for any reason, a receipt should be given. This includes all of the following:
- Rental payments
- Security deposits
- Late payments
- Partial payments
When you enter a lease agreement with a tenant, receipts should be a standard part of the process.
Why Should Rent Receipts Be Used?
There are a number of reasons that rent receipts should be used. The biggest reason is that they are good for record keeping. No matter what kind of receipts you’re utilizing, they will help you keep an accurate record between you and your tenant.
They are also a good way to keep disputes to a minimum. If your tenant states that they’ve paid rent and you have no record of it, you can ensure that they pay it. If you don’t keep a record of receipts then it makes arguing with a dispute much more difficult.
Rent receipts may also be required by the city or state that you’re in. Many states require that landlords provide receipts when requested. Others require that any time a payment is made that a receipt is generated, even if the tenant doesn’t want one. Be sure to check state and local laws.
If you are a property manager or a landlord, rental receipts are an important part of conducting business. When taking payment for the use of your property, a receipt should always be garnered.
Did you find this article helpful? If so, there are plenty more available on our resource hub. Be sure to stop by and check them out!