In order to set up a tenancy you must first have added a property, and ideally have added a tenant although it is possible to add the tenant details while creating the tenancy.
Rent will be applied automatically each rental period in line with the rent schedule defined either during the tenancy creation or afterwards via the tenancy screens.
- From a vacant property, click the Create Tenancy key action.
- If there are existing current tenancies on this property, then you can create a new tenancy via Management > Tenancies > Create Tenancy.
- Provide details of the tenant.
- Provide details of the tenancy dates (fields below).
- Provide details of the rent to be applied (fields below).
- Provide details of any letting fee to be charged to the property.
- Click Save.
When creating a tenancy the following fields are available for completion. Those marked with a red asterisk are mandatory and must be completed, while all others are optional.
Existing tenants and prospects will be listed in this drop-down with some summary contact information shown to help identify them. If the tenant is not listed you can simply type their name and click Add...
The date on which the tenancy starts. This can be any date in the past or future. The status of the tenancy (current, future or past) will be determined automatically when you create the tenancy in conjunction with the rental period and duration values below.
The frequency with which rent is applied to the tenancy, e.g. every month, the default option.
- Month (default)
This specifies how long the tenancy will run for.
- 3 months
- 6 months
- 12 months (default)
- Periodic (the tenancy is ongoing with no end date set)
- Specify duration (you can set a specific end date)
Tenancy End Date
In most cases, the tenancy date is automatically calculated based on the start date, rental period and duration. However, if you choose Specify Duration you will need to select the exact tenancy end date.
Rent and Charges
If the tenancy is let-only then set this selector to Yes, otherwise leave it at the default No option. If you are unclear which option to choose, read about tenancy types.
The amount of rent applied each rental period, e.g. £1000.00. Read more about how rent will be applied automatically using rent schedules.
Create and Apply Rent Schedule?
By default, the system will set up a rent schedule to apply the rent value provided above on the tenancy start date, and then on a recurring basis each period (as defined above) until the tenancy end date. When the tenancy is created it will also bring the rent right up to date, applying rent for multiple periods in the past if appropriate. In most cases this is the desired result.
However, you may wish to apply this rent yourself manually. One reason may be that although the rent should be applied on a date out of sync with the original start date. For example, a tenancy may start on 20th January, but rent should be applied monthly on the 1st. This can be easily done, but must be done manually - untick this checkbox in that case.
Another reason for setting up rent schedules separately is where benefit payments are involved, as benefit receipts are typically on a 28-day cycle, whereas the tenant shortfall payment may be on a monthly cycle.
If a security deposit is due from the tenant in relation to this tenancy then the value provided here will create a security deposit charge to the tenant, due for payment on the tenancy start date.
If you don't specify the security deposit at this stage you can add it at a later date. Read more about security deposits.
Letting Fee to Landlord
Often the agency will apply a letting fee to the property (landlord) for arranging this tenancy. This is based on the default letting fee defined in the settings area, and the value provided should be exclusive of VAT. The system will automatically apply VAT if applicable.