Tenant may accrue rent arrears, either with or without any agreement with the property manager within the agency.
Defining an arrears threshold
Agreed arrears may be due to the fact that a tenant has fallen slightly behind, perhaps due to personal circumstances, and a payment plan is in place to resolve the issue. In this case, you can define an threshold threshold below which you do not wish to be alerted. You will only be alerted when the arrears value exceeds the agreed level.
You can define a threshold for both the benefit and tenant elements of rent. For example, due to the way that benefit payments are received there may be an inherent arrears value which you are willing to live with. But you may wish to be alerted if the tenant balance falls into arrears at all. Set two independent arrears thresholds to manage this.
Suppress the arrears alert
If a tenancy has outstanding rent due to bad debt, e.g. when a tenant leaves a property unexpectedly with paying their rent but you believe there may be a chance of recovering it at a later stage, you can hide the arrears alert temporarily for this tenancy. This will hide the alert from arrears reports, but the arrears still exist on the tenancy itself - it is not written off.
- From the tenancy overview screen, choose Tenancy > Full Details.
- On the full details screen, you can see the current setting for managing arrears on this tenancy.
- To amend these settings, choose Options > Update.
- Make the changes, and click Save.
Alternatively, you may opt to delete the rent charges altogether to clean this up, but if you do so it is recommended that you record a note or memo to that effect for reference.