What Is A Rent Ledger And Do You Need One?
Metrics and reports may seem tedious and a waste of time, but they actually have much more importance to short-term rentals than you may believe. You can gain many insights that can show you how your property is performing and what changes you can make to bring in higher annual revenue.
One of the reports that you’ll want to gather as an owner of a short-term rental is a rent ledger. It gives you a clear view of the money you’ve been collecting from your guests and whether they’ve paid on time and with the right amount.
Want to know why a rent ledger is so important? Continue reading to find out all about them.
What is a rent ledger?
A rent ledger is a report and official record that displays all the rent and payments an individual guest made while staying in your short-term rental. You’ll be provided with a figure of the total amount that the guest has made to you, and you’ll be able to compare it against the expected costs that the guest should have paid you.
You will be able to produce a rent ledger as a physical document, but the most common format you’ll find it in will be electronic. This way, it’s much easier to make copies and send them off to your guest if they happen to ask for them.
Why do you need a rent ledger?
When you have a short-term rental, you aren’t letting guests stay there as charity; rather, you’re running a business. That’s why it’s important that you keep records of all the payments you’re receiving and be able to see if any of your guests haven’t paid the right amount or if they’re late on their rent. It provides this information to you in an easy-to-read format and makes simplifies the process rather than you having to figure it out yourself.
Another way a rent ledger is important is in case you need to evict a guest when they’ve overstayed their welcome and are not paying the rent. This can be a tricky process, but with the right documentation a proof, you can get them out of the property much quicker.
What information does a rent ledger include?
Rent ledgers are unique to you and your guest and may not always be the same. The information included can sometimes be more in-depth than others and can be down to why you’re creating a rent ledger. For example, if you’re making one to look at your finances, it may not include as much personal information. But if you are creating a rent ledger to use as official documentation in removing an overstayed guest from your property, you may need to add a little more detail.
If you want to know some of the main items included in a rent ledger, then look no further. Here is a list of the common pieces of information that you’ll find in one of these reports:
- Your name
- The rental’s address
- Type of property
- Size of property
- Any zoning rules
- Guest’s name
- Number of bedrooms and bathrooms
- Duration of guest’s stay on booking
- Price of your rental
- Any additional fees
- When the payment is due
- How much the guest has paid
- How much the guest is due to pay
- Security deposit if your agreement requires one
Rent ledgers and overstayed guests
While all short-term rental owners dream of guests staying for the time they had booked, this isn’t always the case. Sometimes, a guest will overstay their welcome, and it can be difficult to make them leave. When this happens, they often don’t pay for the extra time they are staying with you as well, which is tough for you as a business.
In these cases, it's extremely important for you to have a rent ledger. It can be used as evidence and support you when you are trying to evict the guest from the premises. If you want to take this record to court, you’ll need to ensure it is up to date and has all the relevant information regarding missed payments and the agreed-upon dates in the booking.
Other documents you may need when evicting an overstayed guest can include:
- Proof that you are the owner of the short-term rental property
- An agreement between you and the guest stating that they would be paying the cost of the rental and that they would leave on a specific date
- Notice of the date the guest was supposed to leave the premises
- Proof that you have alerted the tenant they had to either pay the fees for a longer stay or that they would have the leave the property
How to create a rent ledger
Filling out all this information may seem like a lot of work, but with the help of Hospiria’s software, you can create a rent ledger with complete ease. Our short-term rental management tool comes with a revenue tool that can compile the right records and metrics to keep track of your payments and use in case of a guest who has overstayed their welcome.
With a monthly plan, you can download our software and use it for a number of other management reasons as well. Not only can it help you with your rent ledgers, but you can also use it to stay up to date on maintenance and your listings.
A simple onboarding process will help you compile your first rent ledger, and once you’re used to it, you can easily create one for each of your guests when required. It simplifies the process and helps you keep an eye on whether your rental is as profitable as expected.
Rent ledgers may seem like something you want to skip, especially if you hate paperwork and metrics. However, it can be the make-or-break document you need when you have a guest who just won't leave. At the same time, they can actually help you increase your profit and enhance your business. So from now on, make sure you create a rent ledger for each guest and protect your finances and property.
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