How to Set the Default Rent Collection Type

Defining your management type in Arthur’s finance module is a fundamental step to ensure that your set-up reflects your business. This is particularly important if you intend to integrate with cloud accounting software later on. To identify your management type, you must define your “Default tenancy rent transaction type”. There are two different rent transaction types:

  1. Direct rent – used by those that self-manage, i.e collecting the rent for themselves, (also guaranteed rent businesses). The rent collected is defined as an asset to the business. e.g. self-managing landlord, Rent2Rent
  2. Rent charge is used by those who manage on behalf of 3rd parties. The rent collected is defined as a liability. e.g letting agent, management companies

Some Arthur clients are a mixture of both so we suggest setting your default position to the most common management type.

 

Step 1

Go to Financials > Financial Settings

 

Step 2

Choose Direct Rent if your self managing or Rent Charge if you manage on behalf of a landlord.

Disable rent payment is ticked if you are using cloud accounting to receipt your charges. In other words it stops a user paying off in Arthur.

 

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