Whether you’re a small-time landlord or a veteran in the property management space, a rent ledger can be one of your best friends when organizing your rental property payment history. It can also be useful for your tenants.
In this article by Baselane, we’ll detail what a rent ledger is, how to use one, and provide you with a complimentary rent ledger template to help you manually track rent payments.
We’ll also offer solutions for automating your rent collection process online using free property management software like Baselane.
A rent ledger is a report (typically a document or a spreadsheet) that details rent payments from an individual unit. As a landlord, you need a rent ledger to record and track tenant rent payments while renting out a unit. Ideally, you will have one rent ledger for every unit you own.
A rent ledger includes information about the property owner, the unit’s address, the tenant’s name, the lease terms, the payment history, and other important notes.
You can become a more advanced property manager by using a rent ledger because it benefits the Landlord and the Tenant.
A rent ledger is a simple way to stay organized and allows you to keep track of the amount of rent your tenant or tenants have paid or still owe.
A rent ledger also creates a paper trail that gives you a point of reference for unpaid rent. Or, should a misunderstanding arise, a rent ledger can act as proof and help you avoid issues with your tenants.
While a rent ledger on a traditional spreadsheet may be a good way to start tracking payments, online property management and financial platforms offer a more efficient solution. Property management software can provide automated tracking of rent payments and generate rent ledger reports.
Instead of manually updating a spreadsheet , you can keep track of tenant charges, payments, and balances by signing up for a free Baselane account . The tenant ledger tool in Baselane automatically keeps track of outstanding tenant balances, partial months (such as prorated rent), and late charges.
The rent ledger should feature columns for data input, with categories to classify every rent payment you receive from your tenants.
There should be a dedicated column for the following categories, which can include:
Yes. Property management software , such as Baselane, can automate the process of tracking rent and eliminate the need for a traditional rent ledger.
How long should I keep my past rent ledgers on file?Keeping your rent ledgers on file for six to seven years is the best option.
Will my rent ledger help me in legal cases?Yes. A rent ledger and any documentation of payments can help you with eviction or other legal disputes.
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Saad started his career as a Certified Public Accountant (CPA) working for a top-tier accounting firm. He was responsible for helping audit alternative investment funds. He later worked at a hedge fund where he was responsible for preparing financial statements and implementing new technology. He also ran a successful private tax practice for five years. After completing his MBA at Duke, Saad joined The Boston Consulting Group to do management consulting. At BCG his experience spanned several industries and growth projects across Pharma, Retail, and Technology companies. His passion for democratizing finances led him to Plaid, a fintech, where he worked with large Banks and Financial Institutions to make finances and money easier for all.
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