If you have a tenant who would like to pay off an outstanding amount in instalments, you have multiple options on how this can be reflected in the lease bills on the platform.
You can do one of the following options:
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Option 1: Credit the outstanding amount and add the payment instalments to the upcoming bills
Let's say your tenant owes you the outstanding amount of 5'000 DKK. You can agree with your tenant that they pay 1'000 DKK extra for 5 months to pay off the outstanding amount. In order to reset the balance with the the outstanding amount, we recommend creating a credit note by reducing the bill with the outstanding amount of 5'000 DKK and send it to the tenant. Thereafter, you can add a one-time bill item of 1'000 DKK for the next five months. If the amount has to be paid over a large number of months, then a recurring bill item can be used for adding the instalments, but remember to remove the instalments from the month they expire and going forward.
Reduce the bill
Add a one-time bill item
Add a recurring bill item
If you choose this option, you agree with your tenant to pay the exact amount on the bills. This option has the advantage that the tenant will receive a bill with the specific amount that they have to pay extra every month.
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Option 2: Let the balance stay in minus and let the tenant pay the outstanding amount over time
Let's say your tenant owes you the outstanding amount of 5'000 DKK. You can agree with your tenant that they pay 1'000 DKK extra for 5 months to pay off the outstanding amount (as an example). This way, the negative balance on the platform slowly will decrease.
If you choose this option, you agree with your tenant to pay more than what is reflected on the bill. This option has the advantage that you don't need to add manual bill items to the bills.
Beware: if you choose this option, you should turn off the automatic sending of the default notice letters for the time of the payment plan. Otherwise, the negative balance on the platform will trigger a default notice letter. You can find a description here, on how to disable the default notice letters.
We recommend you to always create a written agreement with your tenant where you outline the terms of the payment plan. You can upload the agreement under the lease documents.
Furthermore, be aware that instalment payment agreements can have an legal impact in termination cases, and the above is only written as a guide for landlords for to create instalment billing on the Proper platform. If you have any questions on how to best support your individual case, contact us under support@helloproper.com.