Rent collection looks simple until a portfolio has two hundred units, several payment plans and a drawer full of cheques. The failure points are predictable: a cheque deposited a week late, a returned cheque noticed too slowly, a deposit refunded without a damage check, or an owner asking where last month's money went. A routine, written once and followed monthly, closes these gaps. Property systems such as Crafts Property OS automate the steps below, and they work on paper too.
Build the schedule from the lease
When a lease is approved, create the full rent schedule at once: the due date and amount for each instalment, matched to the number of cheques agreed. For commercial leases VAT is normally added to the rent, while residential rent is treated differently; confirm the treatment with your adviser. Issue an invoice for each instalment from the schedule.
Keep a cheque register
| Status | Meaning | Action |
|---|---|---|
| Received | In your custody | Record bank, number, amount and date; store securely |
| Due for deposit | Within a few days of the date | Deposit list printed weekly |
| Deposited | Sent to the bank | Wait for clearing |
| Cleared | Money received | Mark the invoice paid and issue a receipt |
| Returned | Bounced | Contact the tenant the same day, add the fee under the contract and follow the legal route if needed |
The same control logic is used for trading customers in credit control and cheque management.
Security deposits
- Record the deposit at lease start and hold it as a liability, not as income.
- At move-out, inspect with photos and compare with the move-in condition.
- Deduct only what the contract allows, show the calculation and refund the rest within the agreed time.
Reminders and ageing
Send a friendly message a few days before the due date and a firmer one after it. Review overdue amounts by age every week and give each overdue tenant an owner and a next step.
Owner statements
Each month, show every owner the rent collected, expenses, management fee and the net payout. Keep owner money separate from the company's own funds. See the wider picture in property management software. Contact us to set this up.