How to Calculate and Update Rent Payments on a Tenancy Agreement
Sometimes a prospective tenant for an applicant will not pass referencing because their affordability is a small amount short of the required amount. In cases such as this, it may be possible for them to pay a 'top up' or shortfall amount at the start of the tenancy to make up for the difference between the rental amount and their maximum calculated affordability.
If you wish to set up a shortfall payment for a tenancy, then just follow these simple steps.
Step 1: Calculate the Shortfall Amount
Before you can update the rent payments, you will need to calculate the shortfall amount. This is the difference between the rental amount and the applicant's affordability, multiplied by the duration of the rental. The formula for this calculation is:
(Rental amount - Applicant's affordability) x Duration of rental = Shortfall amount
Once you have this amount, you can proceed to the next step.
Step 2: Access the Tenancy Agreement
Once you have calculated the shortfall amount, you will need to access the tenancy agreement. To do this, click on the three dots located above the tenancy end date.
Step 3: Select "Edit Deal"
From the options that appear, select "Edit Deal". This will allow you to make changes to the tenancy agreement.
Step 4: View the Payment Schedule
Once you are in the tenancy agreement, click on "View Payment Schedule". This will show you the current rent payments and any other move-in monies that have been agreed upon.
Step 5: Edit the Payment Schedule
To update the rent payments, select "Edit Payment Schedule". This will allow you to make changes to the payment amounts.
Step 6: Change the Rent Payments
For each rent payment, change the amount to the new amount that has been agreed upon. This will ensure that the rent payments are updated to the correct amount.
Step 7: Update the Move-In Monies
In addition to the rent payments, you will also need to update the move-in monies. To do this, change the amount to the new rental amount plus the shortfall amount that you calculated in Step 1.
Step 8: Save the Changes
Once you have made all the necessary changes, click on "Save Deal" to save the updated tenancy agreement. The rent payments will now be updated to the new amounts.
Congratulations, you have successfully calculated and updated the rent payments on a tenancy agreement. If you have any further questions or need assistance, please don't hesitate to contact our support team.