Purchase of a Tenanted Property

You may have purchased a property that is already tenanted. If you have, then the old landlord should have passed over the tenant's deposit and maybe some rent.  If so, here is how you record it.  This example assumes a rent of £500 and a deposit of £600.

Property Purchase

Firstly, record the property purchase in the usual way but you will need to add the following entry.  Use the same account whether you are adding a deposit or a advance rent.

Deposit

Next, record the deposit in the system in the usual way.  Click Deposit Received from Tenant and enter the following information:

Then record how the deposit was protected.

Rent

Finally, record any rent received.  For the amount forwarded, set up an Opening Balance for that tenancy:

The software will raise a credit note.  Simply allocate this credit note to the first rental invoice for that tenant.