How to Handle Rent that is Paid in Arrears (Grace Days)

Lets look at the  example of a tenancy that starts on 1st January with a rent of £1000.00, but where the rent is actually paid 4 weeks in arrears

Step 1

Create your Recurring Rent Charge in line with the contract but ensure it is “Inactive/Off” when set up.

Go to Tenancies Recurring Charges Add Recurring Charge:

Step 2

Add Grace Days for 28 days so that the rent will not appear as overdue until the 28 days has passed. Go to the Recurring Charges > Grace Days 

Select/Enter an amount of Days and Submit.

28 days grace will mean that the rent will be created on the contractual day but will not show as overdue until 28 days has past.

Once Grace Days have been added go back to “Recurring Charge” you created, click on the Drop Down Edit Set to On Save

Go to Tenancy > Statement and you will find the rent laid in but not overdue because of 28 Grace Days

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