As part of our service to landlords, we provide regular detailed statement of accounts for their properties in as clear and concise way as possible. There are various ways we do this and so this article sets out to explain how we can make reconciling your balances easier.
The statements are generated on a time basis, usually for any given month but they can be created for any time period. It's designed to show any account activity for your rental properties. The statement is broken down into different sections.
- Income - Which are funds added to your account
- Expenditure - Which are funds deducted from your account
- Payments - Which are funds sent to your bank account
- Balance brought forward - The balance of your account before the time period of the statement
- Float - any funds held back to cover future costs of works, if required
- The statement balance - usually £0.00, as this shows all the money we have received, or charged, has been sent to you.
Statements are usually generated on a 'per property' basis which keeps things nice and simple. However, we can easily generate a statement of account for all a landlord's properties combined which company landlords and accountants find really helpful.
When a payment is made, our landlords receive an email statement in html format which they can print or save. When we generate a statement for a different time period (see below), we send the statement as a PDF. Some landlords need statements to be posted and we'll happy accommodate those wishes if required.
If there are any deductions to your account such as maintenance, we'll always include an invoice from the contractor with the statement. If you need copies of any invoices, we keep them all so we'll happy forward them on when required.
Receiving your Statement after each payment
The most common method we send a statement of account is after any payment is made to your bank. You'll automatically receive an email statement with the current month's activity showing. This is usually shown as rent being received, any expenditure such as our management fee and the payment being made to your bank.
Because we reconcile our client account one day behind (to ensure funds have cleared) sometime rent may be received on the last day of the month, but the payment is made to your account the day after. When the statement is generated, only the payment will show, because that was the only account activity in the current month. The rent will be shown at the bottom in the 'balance brought forward. section.
Receiving your Statement on the last day of each month
Some landlords prefer to receive a statement that shows a summary of the account activity for the month and we can do this automatically. This is a great way to have consistency in your statements if you like to print them off and store them.
Receiving a period Statement for the Tax Year
This statement is incredibly useful. When your tax is due, it can be a bit daunting, hunting down all the statements together and create some spreadsheet for the totals to work out your tax liability. When you require it, just get in touch and we'll provide you with a simple, straightforward statement which groups all your income and expenses for all properties on no more than two pages. Accountants really like this feature and it might even save you a penny or two.
Explaining 'Balance Transfers'
Sometimes on a statement, you'll see an entry called 'balance transfer'. This refers to balances from one tenancy being transferred to another. This could be for the same properties, or between different properties. This usually happens when maintenance works have been ordered against a tenancy, and then that tenancy ends. This is most common for End of Tenancy cleans or maintenance issues that need resolving. Once income has been received for the new tenancy about to start, we draw on that income, to settle the balance for the old. On the statement, you'll see two entries titled 'balance transfer', one on the income, and the other on the expenditure. No money has actually been deducted from your account, but it represents an internal movement within your account.
When payments are made
We make payments to landlords the day after funds are received by tenants. We check to see if any maintenance or other works invoices have been added to your account, deduct as nessassary and send the difference on to your bank account. Sometimes, the costs of works exceeds the rent amount and when this happens, no statement will be generated, because no payment has been made to your account. This does not mean we haven't received the rent from the tenant!
This can sometimes be an issue if a landlord has more than one property, because the account 'as a whole' is in a negative that our system takes the rent from the all the properties into consideration with whether a payment can be made. This can sometimes result in some concern if rent hasn't been paid across to a landlords bank account, even when we have received the rent from the tenants - it's because the account as a whole maybe in a deficit.
Checking your account in real time
Our landlords can check their statements in real time by visiting the My Area Section of our website and logging in. Here they can check their current account balance, when the rent has been received, any deductions and any payments. It's really useful! It does however only work with current active tenancies for a property. For any historical documentation, just get in touch and we'll happy provided what you need.
Some other agents charge for period statements or duplicate statements - we don't.