Landlords use a rent book to keep track of rent payments.
A rent book is a detailed record of rents received or paid. It is used for record keeping to keep track of rents and to have documentation in case a case needs to go to court. Rental management software that includes these books, along with other options, is available to help property owners and managers stay organized. Hard copies can also be kept, especially for owners who only own one or two properties and don’t generate many records. Tenants may bring their own books for personal reference.
Each ledger line provides space to record pertinent information about a payment. This usually includes the tenant’s name and address, along with the amount paid and the date. The type of payment, such as cash or check, can also be noted, along with details such as the check number. A note line can provide space to add an additional comment if the tenant paid late or there were other problems with the payment.
When landlords receive rent, they can record it in the ledger and provide a receipt to the tenant, providing protection for both parties. The tenant can use the receipt to prove rent was paid, while landlords can refute claims that tenants were double billed by using the ledger and receipt records. Additionally, a rental ledger can be used at tax filing time to account for rental income.
It may be to the tenant’s advantage to also keep records of rent paid. For businesses, this documentation, along with receipts, is required to claim tax deductions. In private homes, the ledger can provide records to use if there is a dispute about the rent later. Tenants can have their records matched against the landlord’s to make sure they match and resolve any discrepancies, such as incorrectly entered payments.
An advantage of accounting or rental management software is that it can provide some functions automatically. You can save data so the user doesn’t have to enter it repeatedly, and you can calculate lag rates if needed. The software can also generate notices of rent arrears so the landlord can keep track of who owes money; can also be used to print property specific reports. They can show how much money has been earned over time, whether the property is paying for itself, and whether the tenant has kept up.