Guaranteed Rent and Guaranteed Income.

Definitions.

Guaranteed Income is where you as agent take over the management and letting of a property and guarantee to pay the landlord a fixed sum each month regardless of whether there are tenants or they actually pay the rent. The landlord gets their guaranteed income and you take any profit and absorb any loss.

Guaranteed Rent is where you, the agent, or an insurance company will pay the rent on behalf of a tenant should they default. The likelihood is, especially if you the agent are paying the rent, that any future money received from this tenant will be paid back rather than used as the next month’s rent.

Guaranteed Income

Select the management type as “guaranteed income” on the building’s admin tab. The option to enter the guaranteed amount will appear.

Note that you also have the option to deduct bills; this means that any repairs to the property will be deducted from the landlord’s guaranteed amount rather than the agent’s “profit”. When you produce the statement rentman will pay the landlord the guaranteed amount (less bills if selected) and will post the balance (plus or minus) to/from the agent’s office account (as an entry in the Bank Transfers(Invoices) screen.

This amount will be shown as “Other Earnings” in the accounts summary and trial balance.

Guaranteed Rent

Guaranteed rent is simply an option when you receive rent. Setup the building as full management in the usual way.

If the tenant doesn’t pay rent one month and you are obligated (or insured) to make up the difference enter receive rent in the usual way except choose “guaranteed rent” as “how”.

Rentman will then transfer the amount from the office account into the client account as rent for this tenancy.

If there is insurance then the likelihood is you will then claim the amount from the insurance company. That is done independently of rentman.

When you next receive rent for this tenancy (and you don’t specify guaranteed rent again) rentman will prompt you to repay that amount back to the office account. If you answer yes an entry will appear in the Bank Transfers (Invoices) screen.

The full history of guaranteed rent transactions can be viewed using the Accounts/ Show Guaranteed Rent menu option. This shows totals for each property.

Double click on a line to see the individual transactions.