Hammock allows landlords to write-off any necessary rent reductions, allowing you to keep orderly books and records across multiple portfolios.
This video will show you step by step how you can write-off rent payments using Hammock. This feature can be used to write-off rent payments either as a one-off or for an extended period.
In certain instances, it may become necessary for you to write-off overdue rent payments in whole or in part. Once you have come to an agreement with your tenants for the amount that they will be paying, Hammock allows you to quickly and clearly write-off the remaining monies which are no longer due. The main benefit here is that your accounts will be in order while the write-offs will still be shown.
Here is how you can do this in Hammock:
Where there is a missing or partial rent payment, this will initially show as arrears on your account. This is clearly displayed on the Tenancies tab under Rent Transactions in yellow, which shows the historic rent due, rent paid and arrears balance (if any).
In our example, the agreed rent is £420 per month. The tenant and landlord have agreed that the rent due will be reduced to £100 for the month of April. We can therefore see that the arrears balance is £320 for the month of April.
Given that this has been agreed between both parties and the £320 is no longer expected to be paid, we need a clean way to remove those arrears while still showing that the rent payment received was less than the originally expected amount. This is the function of the write-off feature.
First click on, ‘Add manual transaction’.
You will then be presented with two ‘payment options’. Click the drop-down arrow and select ‘write-off’.
Then in the next field, set the date to the due date of the rental payment. In our example, this is the 28th of April.
Input the amount you are going to write off, in this instance £320 and then hit ‘save’.
You will be returned to the Rent Transactions page. You can now see that for the month of April the rent is reduced from £420 to £100 and the £320 in arrears has been written off
The value in both the rent received and the rent due columns for the month of April will now be set to the agreed £100 and the arrears balance for the month will be zero.