"Credit" in rental statements

Hi,

I noticed there is a note stating (Credit: $450) on my rental statements. I've been seeing this amount in the last couple of statements. Could someone please advise where this credit comes from?

Thanks

 

Any chance you can post a copy of the statement (sensitive details removed of course)?

 

I'd suggest talking to the PM.

 

Usually payments received that haven't yet cleared, and will be paid to you next payment period

 

How often do you get paid? Ive noticed there is a credit on mine sometimes when the tenant has paid an extra week in advance, and it possibly hasn't cleared yet..

 

I've noticed on mine too. Always changes a few dollars. But it never is $0. Hovering around $300ish.

No clue either. Keen to know what it could be for ?

 

Tenant has paid more than they owe. Often to cover water etc when due

 

Thanks, reason I haven't asked the PM is that I've moved away from them already. Should my new PM have this credit?

Just a bit confused when going through the statements. So I am paid monthly by the PM and each monthly payment consist of 4 weeks rental. If I get paid 12 times a year, that would be 12 x 4. I am being paid 48 weeks, but there is 52 weeks in a year. What happens to that 4 weeks?

 

There is more than 4 weeks in a month

 

Yep. Every quarter has 13 weeks (+/- 1 day)

 

Yes, which is what I'm confused about. In my statement, I can see that I've only been paid 4 weeks on the monthly payments. Some weeks have 5 weeks etc, but this does not reflect in the statements. I can only assume that I'm being paid 4 weeks less every year?

 

They are in front....look at the dates

 

Yes. This is a trust account function and the balances transfer when you change PM.

 

I get this "credit" also and it seems it not necessarily "credit" as we think of it, and in fact they could still be in debt, like my tenants were!!!

The "credit" see would be seeing is actually "credit" towards a full weeks worth of rent!!

So if I see on my statement "Credit $450", and my weekly is $480, it means they are $30 short of a full weeks payment... The statement should give a date the rent is payed to i.e 1st August, then if it says "Credit $450" it means the tenant has to put in another $30 to take rent through the full week up to the 8th August...

 

Whar @GapPhantom said.

In some PM systems it is instead called "On Account".

I have a tenant that treats the rental trust account like a savings account. There is always a bit of money "On Account" ... he is saving up for a full week worth of rent. It is his way of "getting ahead".

 

This is what we consider a "credit". Rent paid that doesn't constitute a full period.

My trust system doesn't list this as a "credit" on the owners statement though, it just lists the effective paid to date (which incorporates the credit). It's quite possible different systems will have different terminology, hence why I wanted to see how your statement was configured.