Apportioned Rent On Tenancy
This functionality allows you to create a pro-rata rent charge if the rent due date differs from the Tenancy Start Date.
This could be due to the Tenant moving in on the 20th of the month, but the monthly rent will be due on the 1st of the month going forward. The system will allow you to raise an apportioned rent charge from 20th – 30th/31st, then raise a monthly charge from the 1st for the months thereafter.
Initial Set up
To be able to use this feature the certain settings must be in place.
To check go to Tools > System Administration > Branches (Click Edit against the relevant Branch) > Lettings Charges and make sure the following Charge Events below say Yes under Selected. (only System Administrators can check this)
To change the required charge events to Yes, click Edit to the left of the Charge Event and tick Enabled then Save.
New Tenancy Term
When creating a new tenancy, there is a First Full Rent Date field. By default, this will be the Tenancy Start Date.
Edit this date if you want to create an apportion rent charge because the monthly Rent is due on a different date to when the tenant is moving in.
Change the First Full Rent Date to the date the monthly charge will be due on.
When the tenancy is finalised, Alto will create a pro-rata charge, the first monthly charge and a pro-rata charge for the end of the initial term. If this end of term charge is not needed, click Edit then Delete Charge.
In the example below, there is a single rent charge from 20/04/2019 to 30/04/2019 for £144.65 and the first full rent is due from 01/05/2019 £400.00. Alto has also created a single charge for 01/10/2019 to 19/10/2019 £255.35 for the end of the initial term.
When changing a tenancy to Periodic or Renewing a tenancy, you will have the option of apportioning the rent again.
This could be because the tenant wants to change the date, they pay their rent on. The system will allow you to calculate a pro-rata charge in the same way when creating a tenancy.
When the renewal is finalised, Alto will create a pro-rata charge, the new monthly charge with the new due dates and a pro-rata charge for the end of the renewed term.
If this end of term charge is not needed, click Edit then Delete Charge
New Periodic Term
When creating a new Periodic Term, you get the option to create an apportioned Rent charge. This could be because the tenant wants to change the date, they want to pay their Rent.
Once New Periodic Term has been created, the system will create a pro-rata charge and a monthly rent charge.
Alto will not apportion rent charges when a tenancy term is vacated.
It is not possible to create an end of term apportioned rent charge for a periodic tenancy term because they do not have an end date.
Therefore, warning messages will be displayed when the tenancy renews or vacates advising you to create a charge to cover to the end of the term or tenancy.