How to Reimburse a Tenant for Repairs
This procedure would be used if you have a tenant who has carried out repairs or has incurred an expense relating to the property and the owner is required to reimburse the tenant.
This document will cover the two options for reimbursing the tenant:
- Create a Disbursement and Reimburse as a Rent Credit or
- Create a Payment to the Tenant by Cheque or EFT
Create a Disbursement and Reimburse as a Rent Credit
This option will create a disbursement for the reimbursement and credit the tenants rent for the amount of reimbursement.
- Create the disbursement the for the reimbursement amount. Go to Transactions > Quick Disbursements and enter the details
- Property – Alpha of the Property to be debited
- Amount – Enter amount of the disbursement and zero out the GST field
- Cheque Number – Ensure that you use the self presenting cheque number 999999
- Pay to – Tenant’s name
- Description – Reimburse tenant for Repairs (include any relevant information)
- Account Code – To be entered (expense code over 200) use a relevant a/c code
- Click OK-F12
- Do a Rent Receipt to the Tenant for the amount of the reimbursement
NOTE: You can enter a comment to the receipt; this is clearly recorded on the tenant ledger against this receipt
- Receipt with Payment Method Direct Deposit, alter the Received From field as the Owners details
- Click OK-F12
NOTE: This will ensure the agent still receives management fees on the rent and that the tenants rent is credited accordingly.
Create a Payment to the Tenant by Cheque or EFT
This option will payout the tenant immediately by creating a one off creditor payment by either cheque or EFT.
- Go to Transactions > One Off Creditor Payments and complete the details of the payment
- Creditor - alpha index and click on ADD to create the tenant as a Temporary Creditor choosing payment method EFT or CHQ. For the purpose of this exercise we will use the example of paying by EFT
- Property – Select the Owners Property
- Amount – Enter the reimbursement amount and zero out the GST field
- Description – Reimbursement for repairs etc.
- Account code – Choose the relevant expense code (200-499)
- EFT Reference/Invoice Number – The Reference field needs to be completed and will appear on the tenant’s bank statement (if paid by EFT) or the cheque remittance.
- Click OK F12
- Click on Process-F9 to complete the process or click on Print F9 if paying by cheque
- Print the Creditor Remittance
- Create file for upload to bank through Transactions > Create file for upload to bank > choose EFT (ABA) Payments and click PRINT-F9 (if paying by EFT). It is recommended you import the ABA file to the bank immediately to avoid this file being overwritten.
NOTE: The tenant can also be refunded by following the first step i.e. doing a quick disbursement using cheque number 999999 and receipting to tenant Invoice Credit. Once this has been receipted, the tenant can be refunded through Transactions > Allocate Tenant Invoice Credit > Refund. For more information on how to allocate tenant invoice credit, please see document “How to Receipt and Allocate Tenant Invoice Credit”.