A receipt may just be a piece of paper, but it sure does carry a lot of weight in business. If you are a landlord, your state may require you to issue a rent receipt to your tenants every time they make cash payments. In most cases, tenants ask for one as proof of payment.
Whether you’re a landlord or tenant, receipts are essential documents for monitoring payments. As a tenant, receipts serve as proof that you have paid for your rent. As a landlord, the receipt helps you track the money flowing into your account and keep an eye on those who have failed to pay rent.
But how do you write a rent receipt?
While you may use any of our free receipt templates or cash receipt templates, you may also produce a receipt solely intended for rent payments.
You can use a receipt booklet that you can buy from a stationery store. Or, you may create a receipt form to print from your computer. If this option is not available, you can also opt for a handwritten receipt, albeit it’s time-consuming.
To maximize your time on creating receipts, we advise creating a template on your computer and printing multiple copies so that you can quickly access them every time you need to issue receipts. Take note, you must always make two copies of the receipt: one for you, and the other for the tenant.
What information should I include in a rent receipt?
Your business information
In the header, put your business name, address, and contact information (mobile number, telephone number, and email address). Write those pieces of information so that your tenants can quickly contact you if they have any inquiries about the receipt.
Receipt number
Receipt numbers serve as unique identifiers. Each receipt must have a different number to make it distinguishable from other receipts. By adding a receipt number, you can easily make follow-ups on your receipts using the number as a reference. Likewise, your tenants can use the receipt number to verify their payment.
Transaction date
The date you must input should be the date you receive the rental payment. There should be a separate field where you can write down the rental period, which shows the dates the rental payment covers.
Tenant’s information
Another section must include the tenant’s name. Putting the tenant’s contact information is optional but essential to have so that you can reach them should you have questions or follow-ups.
Payment details
The payment details must include the total amount of cash the tenant paid. You must also include the payment type: cash, check, or money order. For payments made through check or money order, you must input the check or money order number.
If the tenant paid a partial amount, it’s crucial to write down the balance due.
Signature on a rent receipt
To validate the receipt, you must print your name and put a signature on top of your name. Make two copies for your own records and your tenants’.
Here are a few examples of a rent receipt:
How to make follow-ups on rental payment
Late rental payments can hurt your business. Worse, it can hurt you financially, too. But you don’t have to go frantic over your tenants. Here are some creative ways to ask for late rental payments:
1. Offer alternative payment options
Your tenants may be having a hard time sending payments on time because your preferred payment method is not convenient for them. To encourage your tenants to pay on time, it’s best to provide various payment options. If your tenant prefers electronic payments, you might want to offer wire transfer, PayPal, or other digital wallets.
Some digital payments allow users to transfer money for free, and some have associated fees. If so, talk to your tenants and see what options work best for them. You might also want to discuss who will cover the transfer fees.
Not all tenants prefer digital payments, but it’s great to have them available to give them various options.
2. Set a collection date and stick to it
Is your tenant struggling to pay their rental payment this month? If this is the first time they are late, you can ask for the rent payment kindly. Doing so can ease their burden.
Instead of asking for the rent payment as soon as possible, how about setting a new collection date that’s a few days out? Or, you may also want to set a grace period to give them enough time to pull out the money.
Late payments are frustrating, but you can politely ask your tenants instead of being rude about it. You may tell your tenants that you expect them to pay on the new collection date, so they know you are waiting and aware. At the same time, you can tell them that you are willing to understand if they are delayed, so long as they can pay within the grace period.
3. Speak with your tenants
Has your tenant been failing to pay on time in consecutive months? If so, the best way to deal with this is to have a sit-down conversation with them instead of just sending them a reminder.
If they agree, ask them some questions, such as:
- What causes them to struggle with rental payments?
- Are they doing fine?
- Is the rent due date a problem?
- Do they expect this problem to continue in the future?
By asking these questions, you and your tenant can find solutions to their rent problems without turning to eviction. This conversation is also a great way to tell them that you are waiting for the rent payment.
4. Send payment reminders
It’s easy to overlook payments, especially when you’re always busy as a bee. For tenants, they might easily forget about their rent payments when they’re loaded with responsibilities.
Nevertheless, making follow-ups on payments is not always easy for landlords. Asking for money is not always easy to do. If you’re struggling to ask for rent payment, you might want to consider a different approach. And while this is obvious, the most polite way to ask for rental payments is to ask before anyone is late.
It’s easy to overlook payments, especially when you’re always busy as a bee. For tenants, they might easily forget about their rent payments when they’re loaded with responsibilities.
Nevertheless, making follow-ups on payments is not always easy for landlords. Asking for money is not always easy to do. If you’re struggling to ask for rent payment, you might want to consider a different approach. And while this is obvious, the most polite way to ask for rental payments is to ask before anyone is late.
Sending a reminder about the rent payments a few days before the rent due is way more polite than asking them to pay when they’re already late. You may send the reminder through text or email (and while you’re at it, make it friendly and welcoming).
If you want to send regular reminders, you may ask your tenant if they wish to be included in this type of reminder upon lease signing or when you’re implementing it. Avoid sending these reminders if they are not open to it.
5. Offer discounts on early payees
Is your tenant willing to set up an automatic payment method for future rent payments? If so, how about offering a small discount for this setup? This will encourage your tenant to pay on time, rewarding them for being responsible for their payments. This setup also prevents late payments.
When all else fails
If none of the methods above work, you need to file for an eviction quickly and efficiently. Sending an ultimatum also works.
Here’s an example:
Let’s say the collection date is on the 15th of the month, with a seven-day grace period. You can send a friendly reminder on the 12th of the month. If the tenant fails to pay a day or two after the grace period, you should be sending out an eviction notice. When they still fail to pay within a specific time, you should be filing full eviction as soon as possible.
Again, this may not always be the case. It’s always best to talk to your tenant, more so if they are failing to pay their rent several months in a row. Are they struggling? Have they lost their jobs? When you open a conversation with them, you and your tenants can find solutions together.
There’s nothing wrong with giving your tenants extra days to get their payment together. If anything, that shows being considerable. However, the later they pain one month, the more likely they will pay late in the coming months. A landlord is understanding, but you must also be clear about your terms and policies.
True, there’s nothing more stressful than evicting a tenant for non-payment. Yet, it’s more taxing when you’re not paid for long periods due to unreliable and irresponsible tenants.
Get paid on time
While figuring out how to ask a tenant for rent politely, make sure you don’t wait too long for them to get their payment together. Making swift and concrete decisions is necessary for landlords.
More importantly, you can avoid getting paid late if you do a thorough screening of your applicants. Make sure the lease states your payment terms clearly. Further, offer various payment options to make rent easier for your tenants.
