---
title: How to manage letting agent float payments and repair costs in Hammock
description: If your letting agent keeps some of your rental income aside to cover future expenses, this is known as a float. It's important to record these payments correctly in Hammock so your rental income, expenses and letting agent payments are accurately reflected in your accounts.
---

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# How to manage letting agent float payments and repair costs in Hammock

## If your letting agent keeps some of your rental income aside to cover future expenses, this is known as a float.

For example, your agent might retain £200 from your rent to cover repairs or maintenance costs.

It's important to record these payments correctly in Hammock so your rental income, expenses and letting agent payments are accurately reflected in your accounts.

### **How does a letting agent float work?**

Your letting agent might collect £1,000 in rent but only transfer £700 to your bank account.

The remaining £300 could include:

- £100 in letting agent fees.
- £200 retained as a float for future expenses.

Although you've only received £700 into your bank account, your letting agent has collected £1,000 in rent on your behalf.

The £200 retained as a float hasn't yet been spent, so it shouldn't automatically be treated as an expense.

### **What happens when my letting agent pays for repairs using the float?**

Let's look at an example across two months.

#### **Month 1 — Your agent retains £200**

Your letting agent collects £1,000 in rent, deducts their management fee and retains £200 for future expenses.

| **Description** | **Amount** |
| --- | --- |
| Rent collected | £1,000 |
| Letting agent fee | −£100 |
| Money retained as float | −£200 |
| **Paid into your bank account** | **£700** |
| **Closing float balance** | **£200** |

At the end of the first month, your letting agent is holding £200 on your behalf.

This money hasn't been spent yet, so it isn't a repair or maintenance expense.

#### **Month 2 — Your agent pays for a repair**

The following month, your letting agent collects another £1,000 in rent and uses £150 of the existing float to pay for a repair.

| **Description** | **Amount** |  |
| --- | --- | --- |
| Opening float balance | £200 |  |
| Rent collected | +£1,000 |  |
| Letting agent fee | −£100 |  |
| Repair paid from float | −£150 |  |
| Paid into your bank account | −£900 |  |
| **Closing float balance** | **£50** |  |

Your agent has paid £150 for repairs using money they were already holding from the previous month.

The remaining float is now £50.

**The important thing is not to record the £200 originally retained as an expense and then record the £150 repair as another expense.**

The retained float and the repair payment are different movements, and recording both as expenses would overstate your costs.

These figures are illustrative and explain how to reconcile your letting agent statement, rather than the exact entries to make in Hammock.

### **How do I record letting agent payments in Hammock?**

When your letting agent transfers rental income to you, the amount received may be lower than the rent collected because they've deducted fees, paid expenses or retained money as a float.

Hammock allows you to split transactions so you can categorise the different parts of a payment.

Depending on what you're recording, these guides will help:

- [**How to manage transactions from letting agents**](https://help.usehammock.com/getting-started?hsLang=en) — for setting up and tracking rental income received through a letting agent.
- [**How to split transactions in Hammock**](https://help.usehammock.com/how-do-i-split-transactions-on-hammock-1.08?hsLang=en) — for breaking down a payment into different income and expense categories.
- [**How to manage float payments on a letting agent statement**](https://help.usehammock.com/how-to-manage-float-payments-on-a-letting-agent-statement?hsLang=en) — for recording money retained by your agent to cover future expenses.

Follow the relevant guide to record your letting agent transactions, including any fees, repairs or float movements.

### **What date should I use?**

Hammock uses cash accounting, and the transaction date is taken directly from your bank feed.

This means **you can't change the transaction date** to match an invoice date or a different date shown on your letting agent statement.

For example, if your agent pays for a repair in one month but the relevant payment appears in your bank feed the following month, the date of that bank transaction remains unchanged in Hammock.

Keep your letting agent statements and repair invoices so you can reconcile the movements and check the dates when the money was actually received or paid.

If you're unsure how to record an expense paid from a float retained in an earlier month, please contact our support team for guidance on the appropriate Hammock workflow.

### **How do I check that everything matches?**

Once you've recorded your letting agent transactions, compare them against your letting agent statement.

Check that:

- The gross rent matches the amount collected by your letting agent.
- Letting agent fees and other expenses have been categorised correctly.
- Money retained as a float hasn't been incorrectly recorded as an expense.
- Repairs paid from the float haven't been counted twice.
- The amount transferred to your bank matches the payment shown on your bank feed.
- The remaining float balance matches your letting agent's statement.

Remember, the amount transferred into your bank account won't necessarily equal the gross rent collected because your letting agent may have made deductions or retained money.

### **What if my figures don't match?**

If your figures don't reconcile, check:

- The opening float balance.
- The rent collected by your letting agent.
- Any management fees or other deductions.
- Repairs and maintenance costs paid from the float.
- Any additional money retained or released.
- The amount transferred to your bank account.

If the figures still don't match, your letting agent should be able to explain any differences in their statement.

### **Need a hand?**

If you're having trouble recording letting agent payments, splitting transactions or managing a float in Hammock, please get in touch with our support team at **hello@usehammock.com**.

We'll be happy to help you with the Hammock functionality.

For advice on the accounting treatment or tax deductibility of a particular expense, we'd recommend speaking to your accountant.

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