Landlord Maintenance Retainer
You might have the need to retain some money on instruction from a landlord on a monthly basis in order to pay for future maintenance on the Property. In order to ensure that you have a proper audit trail of the money retained for maintenance, we recommend the following approach:
- Create a New Maintenance Retainer Dummy Property, Dummy Mandate, Dummy Application and Dummy Lease for the Property. You might want to choose a name for this Property that would be easy to identify as the Maintenance Retainer. Use an abbreviation such as the Landlord Name or MR in the Property Name. Use the same Landlord as for the actual Property.
- When you want to allocate money to the Maintenance Retainer Lease, you can do that as follows:
- Bill the Landlord for the Amount to be retained. It is recommended that you use the OTHER category for this.
- When the next rent payment is received, allocate the retained amount to your Trust Account Beneficiary. Use Beneficiary Type OTHER and Payment Category OTHER.
- On the Bank Payment schedule mark the Payment as PAID and do not include in the Bulk Payment Export file.
- Navigate to the Retainer Lease account and load a Credit Note with Unallocated Funds for the Retained Amount on the Tenant Account. Use the Tenant Payment category.
- You can now go to the Allocations Dashboard and allocate the Retained Amount to pay for Maintenance or if you want to save it in the Investment Account, you can allocate the retained amounts to the Investment Account.
- To release portions of the Retained Amount, you would handle that as a normal Tenant Refund process from where you can pay Contractors for maintenance, etc.
- The Dummy Retainer Deposit Account will then always indicate monies received into the Retainer and Costs recovered from the Retainer.