What are your thoughts on giving tenants a receipt each month after their rent check clears?
I have been doing this and using it as a communication tool and also to perhaps create goodwill with the tenants.
On the other hand, perhaps it is only busy work that isn't providing a benefit for my rental business or the tenant.
I don't offer that unless asked and never have been asked to so far. More time--no benefit.
If they pay with personal check their cashed check serves as a receipt. The only time I provide a receipt is with cash payments. Still trying to ween some of them off cash.
I only provide annual receipt. If a tenant is paying in cash you should provide a receipt when it is received and keep a copy for yourself.
Annual CRP is required to be given,, certificate of rent paid .. for taxes..
Receipt for any cash payments.. and otherwise,, Nope..
I don't need to waste my time, and postage, or paper. Can't remember if I was ever asked for monthly receipts.. only with move in paperwork.
When receiving cash, always provide a receipt and make sure it itemizes what the cash covers.
Unless there is a legitimate reason to provide the tenant with a receipt, we don't.
We've only had one tenant request regular receipts and it was to show her case manager, related to monetary support she was receiving. We obliged.
We've never had a tenant request an annual CRP (certificate of rent paid). Good to learn about that term, thanks @Deanna McCormick .
my bank gives me a scan of the check (I'd assume it'd be harder to find a bank that doesn't do this, then does)... no need for a receipt.
@Marcia Maynard Re: CRP Certificate of Rent Paid tax Form..
This is a State Tax Form some states require it some don't, and it may be referred to as something similar but if you have rental property in a state where it is required you as landlord must provide this form to your renters for the tax year they paid you rent ,by Jan 31 the following year.. so 2017 rental income would be filled out on the form and must be given to tenant by January 31,2018..
For instance in Kansas it's called the RNT form,, Certificate of Rent Paid..
So when you have to do this at tax time each year and have over 300 apartments,, its a job to complete and get mailed out.. Also for multiple tenants that are on a lease, the total of rent paid is split evenly between the tenants and each gets a CRP form for their portion of the rent collected on that apartment.. Late fee's aren't considered rent. So anyone doing this for the first time,, check to make sure your filling out the forms correctly, and you are required to keep copy of forms for your records..
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing