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.
You create a tenancy by first going to the relevant property. If the property is currently vacant there will be a Create Tenancy link in the key actions area of the tenancy overview screen. Otherwise, if there are existing current tenancies on this property then you can create a new tenancy via Management > Tenancies > Create Tenancy.
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.
Tenant name: Existing tenants and prospects will be listed in this drop-down, categorised by Individual or Company. If the tenant is not listed you can choose Add New... to add the tenant details in a pop-up form without having to move away from this page.
Let-only: 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.
Start date: 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.
Rental period: The frequency with which rent is applied to the tenancy, e.g. every month, the default option. The options are:
- Month (default)
Duration: This specifies how long the tenancy will run for. The options are:
- 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)
Rent review date: The date upon which the tenancy is able to have the rent value reviewed.
Rent value: The amount of rent applied each rental period, e.g. £1000.00. Read more about how rent will be applied automatically.
Security deposit: 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.
Arrears threshold: When monitoring rent arrears, by default a tenancy is considered to be behind on rent payments if its rent balance is greater than zero. However, some tenancies may run a little behind with prior agreement due to tenant salary payment dates, or for other reasons which do not cause immediate concern. If you wish to set higher thresholds for particular tenancies then specific a custom threshold here. For example, if a threshold of £550 is set for a tenancy and the tenant currently owes £500 then this tenancy will not appear in the rent arrears report. However, if the outstanding rent balance increases to £1000 then they will be considered in arrears. Note that this arrears threshold only applies to the amount owed directly by the tenant. You may specify a separate threshold for rent due for payment by benefit.
Auto-collected? If rent is paid automatically into your agency bank account each rental period, then in order to make bank reconciliation easier then you may set this tenancy as being auto-collected. This will automatically create a record in the bulk tenant transactions report so that it may be marked as received with a single click rather than having to go through the slightly longer tenant receipt process.
If the tenant is in receipt of housing benefit contributions to help with rent payments then you can specify this during the tenancy setup. Of course, this may also be done later if you don't have this information to hand at the outset, or if their circumstances change mid-tenancy.
Read more about housing benefit.
Agents often wish to charge a landlord a letting fee for arranging the tenancy. Read more on applying a letting fee.
If you wish to apply either one-off or recurring charges to the tenant, this may be done once the tenancy has been created Read more on applying tenant fees.