A rent receipt is a document that a landlord uses to keep accurate track of the rental payments that he receives from the tenants. It basically serves as proof that the tenant indeed remitted his dues as a part of the lease obligation. Further to that, it may also serve to aid litigations and settling of any disputes that may arise in the course of a tenancy.
In general, a standard receipt captures the following details and contains the following pieces of information:
- Name and address of the tenant – The name of the tenant who actually remits the rental dues in question.
- Date of the payment – When exactly the rental dues are remitted. It also covers the period of time for which the rental payment is due.
- Amount of money paid – How much money the tenant pays in question.
- Method of payment – The manner in which the payment is made i.e. cash, check, money order, mobile transfer or bank wire transfer, among others.
- Landlord’s signature – A signature of the landlord that vouches for the receipt of the payment and the accuracy of the details.
How to create a rent receipt?
These rental receipts are accessible via any bookstore. Such books are already printed and assigned some serial numbers that aid in tracking the receipts much like the checkbooks.
If you are however intent on drafting your own receipt at the comfort of your own home, you should consider downloading our free templates for Excel and Word. These give you the leeway to customize the contents and appearance of your receipt to your own expectations and aspirations.
Receipt templates (Word)
Receipt templates (Excel)
Consequences of not using a rent receipt
The failure to use the rent receipts might attract dire consequences. Below are some of those:
If and when the tenants discover that the landlord does not keep an accurate record of the receipts, they may take advantage and skip a payment altogether. Alternatively, they may also lie that they have indeed remitted payments yet in reality they have not.
In case any dispute touching on rental payments spill over to the courtroom, the landlord may be at a disadvantage with regards to defending himself. He may not produce the exhibits to showcase that indeed the tenant was paying his dues as required or not paying at all.
For any business to blossom and flourish in the long run, there has to be some trust and security among the key players. Failing to maintain the records will eat away some trust and sense of security from the tenants. This may, in turn, harm the rapport between the landlord and the tenant that eventually diminishes the revenue inflow.
Reduced Revenue Inflows
Just in the case, the issue persists for an extended duration of time, the affected landlord may suffer reduced revenue inflows. Considering that the landlord exists primarily to make a profit, such a reduction may severely harm his standing and stay in business.