Since all financial activity is recorded at a property level, all balances and activities against a landlord are simply the aggregate of that landlord's individual properties.
Each landlord has an overall balance, which comprises all money held on the landlord's account (usually within a client bank account) and all money which is owed by the landlord to the agency and/or suppliers who have carried out work on the property.
Overall balance = client account credit - fees/expenses due to the agency/suppliers
In this example screenshot, the landlord has 1000.00 of rental income awaiting payout, and a management fee of 100.00 +VAT (totalling 120.00) which has been charged in relation to that rent collection. Hence, the overall balance is 880.00.
Clicking the links on any of these balances will take you to a full breakdown of what is comprised in that figure.
This is the total money held in the client account(s) by the agency for the landlord (awaiting payout) and will have originated from one or more of the following sources:
- Rental income
- Payments on account
- Recharged expenses to tenants, e.g. utility bills
- Security deposits awaiting transfer to landlords for protection
The main source of funds on a landlord account is rental income paid from tenants and/or local authorities in respect of rent received from tenancies on one or more of the landlord's properties.
Additionally, a landlord may have made ad-hoc payments on account to the agency in advance of upcoming maintenance work, and this will also be retained as credit on the landlord account.
Charges may be applied to tenants in relation to utility bills such as broadband or electricity, and these recharged expenses will appear as credit on the landlord's ledger within the client account once the tenant has paid these.
When a tenant pays a security deposit at the outset of a tenancy, this deposit must be adequately and securely protected in a recognised tenancy deposit protection scheme. Sometimes this deposit will be passed to the landlord who will assume responsibility for lodgement of this deposit.
This is the total money due to the agency from the landlord in respect of their managed properties, and will have originated from one or more of the following sources:
- Property management or maintenance fees (including VAT, where applicable)
- Job charges in relation to maintenance, which are due for payment to the supplier
Usually the charges on the office account are some form of property management fee, whether that is in relation to the collection or rent, setup of a tenancy, or facilitation and management of maintenance activity. These charges will have VAT applied where appropriate, depending on the agency's configuration.
These can also relate to expenses which are not revenue-generating for the agency, typically recharges of expenses such as key-cutting.