A charge applied to a property may be paid in a number of ways, and the method or process used will vary depending on the agency's own existing procedures and preferences.
When is the charge paid?
A charge may be paid in a number of ways, and these processes may be used interchangeably within the agency - it's not a case of choosing one or the other every time.
- When a payment is being made to the landlord, the charges may be paid in the same process with the landlord being paid out the remainder of the rental income once the charge balance has been settled using these funds. This is the simplest and most common approach.
See full details on paying property charges while paying out to the landlord.
- A charge may be paid at any time by allocating or posting a payment from existing rental income (or other credit or overpayments) available on the landlord or property's account. This will reduce the rental income balance, which may then be paid out separately at a later date.
See full details on posting payments to property charges without making a landlord payout.
Which property pays the charge?
Obviously a property charge is ultimately due from the landlord who owns the property, but it is possible to pay a charge (or charges) in two ways.
- By default, a property charge will be settled only from funds on that property itself. Many landlords prefer to treat each property in their portfolio independently and do not wish each property's accounts to be mixed with other properties, even though they all belong to the same owner.
- Some landlords are quite happy for funds from any of their properties to be used to pay charges on any others. From their perspective the property portfolio is treated in its entirety, and cross-property payments are fine.
The process for each is much the same, but ticking the "Allow payment of charges from any property?" checkbox will use funds from other properties in the portfolio.