From time to time, a tenant may pay a rental owner directly. In this case, it's important to record this money on the tenant's ledger for a few reasons:
- To ensure the ledger's accuracy.
- If the management fee policy is based on a percentage of collected income, this money should be included in the calculations.
To record this in Buildium:
- Navigate to Rentals > Rent roll.
- Click on the lease you want to record the tenant payment on.
- From the lease summary page, click on the Financials tab.
- Issue a credit to record the money that was paid directly to the owner. Add the credit as usual and use the following settings:
- Date - as appropriate
- Amount - as appropriate
- Credit action - choose the third option to Issue credit for payments previously deposited. Choose Owner Draw Equity as the offsetting account.
- Memo - as appropriate
- Apply the credit as appropriate to the situation.
- Click Save credit.
If this happens on a regular basis because the tenant always pays the rental owner directly, consider using a recurring credit.