Transferring Balances after a Rent Roll Sale

Overview

Transferring Balances after a Rent Roll Sale

This Reapit PM article a step by step guide to transfer balances after a rent roll sale.

There are likely two types of balances that need to be transferred, tenant deposits and owner balances. We recommend you pay out as much as possible to reduce trust balances to minimal.

The process here is to get the funds from the tenant/owner to a creditor that is set up with the other agencies trust account details, then disburse the creditor.

The processes in this article include:

• Setting Up a Creditor
• Owner Balances
• Tenant Balances
• Creditor Disbursement

Set Up a Creditor

First step, set up a creditor with the other agencies trust account details.

1. Click on People.
2. Click on Creditors.
3. Click on Add New.
4. Search and select an existing creditor or Add New creditor.

Next is to print out a copy of the trial balance reports to manage fund transfers and to provide to the purchasing agency.

1. Click on Accounts.
2. Click on Reports
3. Select Month to Date Trial Balance from the dropdown.
4. Select the Ledger Type from the Dropdown.
5. Click on Download.

Owner Balances

Owner balances are transferred to the creditor by entering a bill payment. When creating the bill select the other agency as the creditor, and the dissention as Money paid to owner so it doesn't appear on any financial year statements. Once created, process all bills.

Tenant Balances

Similar to the owner balances, but instead of bills being created an invoice needs to be created for each balance. When creating the invoice be careful not to email the tenant. This is done by clicking the down arrow next to Create & Send and selecting Create & Download.

Once the invoices are raised, you can use the transfer deposit option in the tenant agreement to apply the deposit to the invoice, which will move the funds to the creditor.

Creditor Disbursement

Once all the above is done, the creditor can be disbursed, and the funds transferred to the other trust.

When the funds hit the new trust, the tenant deposits can be receipted as tenant deposits. The owner funds should be entered as a miscellaneous receipt to the owner using the money paid to owner dissection.