All You Need to Know About Creating A Rental Invoice

Last Updated on May 20, 2022 by Admin

Being a landlord is a tough task. Rent collection can become a major hassle if not managed properly. It is no less than a full-time job, and you will need to deal with multiple payments and even invoicing methods. 

While many property owners use free invoice templates to simplify their jobs, there are many accounting functions that need to be taken care of. This post will explain how you can create the best rental invoices and make the right use of online invoicing software. 

What is a Rental Invoice? 

 Well, it is a transaction statement between a landlord and a tenant. Usually, these are sent out every month. However, there is no hard and fast rule that you need to follow it. You can also take a few months of rent in advance and store the information in your online invoicing software. 

Besides, your rent invoices should not be limited to accommodation charges. They can also include utilities like electricity, water, and shared expenses if it is a multi-apartment complex. 

 

Invoices are excellent proof of transactions and also aid in legal purposes. In addition, using free invoice templates is a great way to maintain error-free records and have your paperwork sorted. Many landlords thus choose online invoicing solutions to make their job smoother. 

Here is the information you need to add to your rental invoice to ensure there is no confusion. 

Invoice Number

Every invoice has a unique number for accounting purposes. Using free invoice templates, the system generates invoice numbers in the right chronological order. 

Landlord details

The landlord’s details must include their name, address, and contact details. 

Tenant’s Details

This will include the tenant’s name and address. 

Property Address

It is a must to add the address of the rental address. In some cases, it will be the same as the one you add in tenant details. 

Items

This section will have a list of items tenants will need to pay charges for. It includes accommodation charges plus other charges like electricity, water, furnishing rentals, or shared expenses. 

Subtotal/Total

Usually, invoices include a subtotal amount, and then discounts, taxes, or credits follow it. Once all this information is added, the total amount is calculated and displayed in bold format. This is the amount your renters will need to pay. Thus, make sure it is visible and can be spotted with ease. 

Notes

Many landlords choose to include a short section on terms of payments, thank you messages, and other relevant methods. 

Why Use Online Invoicing Software? 

A major benefit of using these solutions is that you can access free invoice templates. So, you will have the basic layout, all you will need to do is enter invoice information and let the system take care of the rest. Post that, you will be able to generate a numbered invoice and send them directly to your tenants. 

Besides, you will always have your records sorted and can retrieve them in just a few clicks. Using ready-made templates is ideal for landlords as they are not into the core business. Moreover, they will not need to invest special time in gaining accounting and computing skills. 

Keep It Simple

You will need to understand that it is not about maintaining a business image. You need a clear and concise invoice that your tenants can understand. Overcomplicating things with lengthy descriptions will not help, leading to delays in payments. Just make sure your invoice is appealing to the eye and covers all information. 

Send Timely Invoices 

Make sure you keep your rent schedule and set a date for the same. This will also help your tenants stay on a schedule. Moreover, they can save accordingly and pay you on time without fail. A good online invoicing software lets you pre-schedule recurring invoices and sends out automated payment reminders. 

Wrapping Up 

Last but not least, make sure your payment instructions are clear and mentioned in your online invoicing software. Yes, we understand you want to maintain friendly relations, but a rent invoice is legally binding, and getting paid in full is the whole point. 

Start using free invoicing templates and include all relevant terms to get going. If you are still not sure which online invoicing software will work best for you, let us help you find one!