Adding a tenancy

This article will look at:

  1. Workflow of adding a tenancy
  2. How to add a tenancy

1. Workflow of adding a tenancy

Before you begin this process, look at the workflow below and ensure you have access to the information needed.

2. Adding a tenancy

This can be completed from a lot of areas within the system. The most popular are: from within a viewing, from within a unit and from the Add button at the top of the screen.

Step 1 – Tenancy Details:

Select the correct Tenancy Type

  • Residential
  • Commercial
  • Short stay
  • Long leaseholder

Select the correct Tenancy Status

Ensure the status is correctly chosen, if you’re still unsure then read this article on understanding the tenancy status

  • Prospective – A tenancy that is not definitely moving in, e.g. they have put down a holding deposit but awaiting references
  • Approved – A tenancy that is approved and is waiting for the start date of the contract
  • Current – A tenancy within the fixed term period of the contract
  • Periodic – A tenancy on a periodic rolling contract, e.g. no end date
  • Ending – A tenancy ending/moving out on a specific date, e.g. you have served notice or they have given notice
  • Past – A tenancy that has ended
  • Rejected – A tenancy that never happened, e.g. failed referencing or pulled out

Update all other fields

  • If there is more than one tenant named on the contract, use the drop down
  • Enter the start and end dates that are on the contract, alongside the duration (if you enter the start date and duration, Arthur will work out the end date for you)
  • Update the contract type
  • If you used a ‘find only’ letting agent, enter their details

Step 2 – Financial Details:

This is for information ONLY at this point it does NOT create any transactions.

  • If a deposit is taken and not registered with a scheme (i.e. if the tenant is on a license), select the registration not required tick box
  • If you are expecting individual payments from each tenant, select the Split rent tick box
  • If your Rent Frequency is not listed, click here to learn how to add a bespoke frequency
  • The bank account is the account the tenant(s) will be paying their rent into
  • The Deposit account is the account where the tenant(s) initially paid their deposit into, not where it is held

Step 3 – Tenant Details:

This step is for adding in the tenant details, as well as creating the recurring rent transactions

The start collection date is by default the next collection date (future date). You can backdate this to the start of the tenancy if you would like a history of payments, however you must then reconcile all previous transactions and this can be a lot of work. Do not do this if you are planning to integration with an accounting software.

  • If you collect rent on a specific day of the month that is not the tenancy start date, then replace the start collection date with that date in Arthur and tick pro rata rent. Arthur will calculate and apply a pro rata rent on the following page
  • If you selected the ‘Split Rent’ tick box on the previous page, Arthur will split the rent equally between the tenants. If this needs correcting make the correction here by adjusting the amount
  • Days in advance creates the transaction before the due date. As best practice, we advise you put 3-7 in the Days in Advance box to ensure the rent is created before the due date. If you are integrating with an accounting software, these transactions will sync across early too

Step 4 – Charges

At this point you are creating;

  1. One-off transactions payable by tenants or owners (a move-in statement for new tenancies or opening balances or liabilities for existing tenancies)
  2. Property owner recurring fees (used by letting agents only). Fees  payable by the owner and can be recurring or added as individual transactions. The management fee type is either
    • Fixed – never changes, regardless of if a tenant pays their rent or not and how much they pay
    • % Rent Charged (Start date of collection required) – receive a percentage of the rent charged to the tenant, regardless of if they pay the full amount or not
    • % Rent Received (No dates required as it will apply when rent is received not charged) – receive a percentage of the rent received from the tenant, if the full amount is not paid then the full management fee is not received

If you’re management fee is not decided on a tenancy-by-tenancy basis, click here to read an article on how to set up management fees at the property or unit level.

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