Learn how to track your rental income when you use a letting agent to collect the rent payments.
In this video you will find out how to categorise the rent payments that you collect from a letting agent. To find out how to categorise rent payments collected directly from a tenant, click here.
First, head to the 'Transactions' screen. Then:
1. Search for the payment you want to categorise using the available filters (in this video, we use the transaction date as an example)
2. You will find a transaction for the net rent amount, i.e. the rent paid by the tenant minus the letting agent fee (in this video: £1,200 rent - £120 fee = £1,080)
3. Categorise the transaction by clicking on it and then selecting 'Rental income' as the category from the menu on the right-hand side of the screen.
4. Link the transaction to the relevant property and tenancy and click 'Save'
5. You will find that Hammock has automatically created a split transaction to account for the letting agent fee.
6. Now your bookkeeping shows three amounts:
- £1,080: net rent received, relevant for your cash flow
- £1,200: rental income, relevant for your tax statement
- £120: letting agent fee, relevant for your allowable expenses