Refunding a fee to a landlord

Occasionally, you may need to refund a landlord money. This might be due to an overcharged fee or as a goodwill gesture. The best way to action this is by crediting the charge.

If this isn't possible, the fee can be returned to the landlord via the refund fee process.  

This article includes: 

Raising a negative fee

 Note

Refunding a fee by creating a negative fee, ensures the fee refund appears on the landlord statement, and the period statements at the end of the year

  1. Click Property on the main toolbar
  2. Select the relevant property from Recent & Favourite Properties
    1. Alternatively, find the property using the Search Properties bar in the top right
  3. Click Actions
  4. In the dropdown menu, click Charge
  5. Click Add Charge
  6. Under Charge Item, select a fee item
  7. Edit the Description as required
  8. Enter the amount you wish to refund as a minus/negative
  9. Confirm the VAT rate and Total Charge amount are correct
  10. Click OK 
  11. Tick Raise Now next to the relevant charge and then click Raise Selected 
  12. Process Agency Fees will need to be updated for this to show as payable to the landlord.
    See Updating Process Agency Fees to refund the landlord below

Updating Process Agency Fees to refund the landlord

In order to ensure that there are funds available to process a refund to the landlord for agency fees:

  1. Click Accounts on the main toolbar
  2. On the side menu, within the Bank Transactions section, click Process Agency Fees
  3. On the relevant client account that you will be paying the landlord from, ensure that there are agency fees available to process. (There must be agency fees available to process here in order to proceed with the refund. As such, you may have to process some rent payments to be able to process the refund)
  4. Click View on the relevant client account
    1. If you do not wish to update all your fees at present, remove the tick from Include (this will de-select all fees). You can then select/tick enough fees to cover the refund amount (or the amount of the negative)
  5. Next to Balance carried forward, click £0.00

    Refunding_a_fee_to_a_landlord.png

  6. Enter the total amount of agency fees you wish to refund, or the amount that is showing as Total Allocated (if you have created a negative fee and you do not wish to make a payment). Click anywhere on the screen to ensure the amount entered, is saved

    Refunding_a_fee_to_a_landlord_2.png

  7. The Net payable figure will now be recalculated accordingly. Click Update to show the balance brought forward
  8. You will now be able to process the refund to the landlord via the landlord record (see Refunding agency fees to the landlord below), or the negative fee will now be available to pay via their statement

Refunding agency fees to the landlord

 Note

If you don't wish for the refund to appear on the landlord statement, but want to refund them separately, follow the steps below to refund a fee and issue them a refund note

  1. Click Contacts on the main toolbar
  2. Select the relevant contact (landlord) from Recent & Favourite Contacts
    1. Alternatively, find the contact (landlord) using the Search Contacts bar in the top right
  3. Click Actions
  4. In the dropdown menu, click Refund
  5. The Refunds For window opens
    1. Refund Date - Enter or edit the date for the refund
    2. Refund Type - In the dropdown menu, click on your preferred payment type for how you are going to pay the money back to the applicant
    3. Send Refund - Ensure this is ticked if it isn't already
    4. Refund from Client Account - In the dropdown menu, click on the bank account you are going to refund the money from
    5. Bank Reference - Add a reference if necessary
  6. Click Add Refund Item
  7. The Add Refund Item window opens
    1. Enter the Charge Date
    2. In the Charge Item dropdown menu, click Fees, then click Administration Fee
    3. Edit the Description as required
    4. Enter the Net Amount. If you are VAT registered, VAT will automatically be added
  8. Click OK
  9. Click Update

 Note

If you receive a red warning triangle stating You have insufficient funds for one or more items on this refund, please follow Updating Process Agency Fees to refund the landlord. Once completed, you can follow the relevant refunding process above

 Did you know...

There is also a troubleshooting article on There are insufficient funds to refund fees, which you may also find useful

Related articles: 

Paying a landlord

Setting up an admin fee on a property

Setting up a letting fee on a property

Setting up initial fees

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