Free Lease Ledger Template
A lease ledger, also known as a rental ledger, is a financial tool used to track revenue and expenses related to a rental agreement. These ledgers typically contain columns for the date of the expense, a description of it, the amount, the amount paid and the outstanding balance. Either a landlord or a tenant can keep a lease ledger, but ledgers may contain different entries, depending on which party records the transactions.
What is a Lease Ledger?
A lease ledger is a place for tenants to record payments they have made and for landlords to record payments they have received. Additionally, tenants and landlords can record expenses made on repairs or improvements to the property.
The document can be used in court; however, without signatures from both the landlord and tenant or receipts, it is difficult to prove that what is written on the ledger is accurate.
As a tenant, you may want a copy of your landlord’s lease ledger at the end of the tenancy as proof to future landlords that you are a good tenant and as proof that you made all your payments, should your current landlord contest that later on. A copy of your landlord’s lease ledger is much better evidence than your own.
Lease ledgers can help landlords track cash flow and budget for future expenses. Ledgers can also help them evaluate expenses and identify trends, and a completed one can help identify expenses for accurate tax filings. If a landlord needs to evict a tenant, a ledger can help prove a history of missed or late payments and, if necessary, expenses for property repairs. A tenant’s lease ledger can help defend against an unjust eviction by recording the dates of rent payments and personal investments in necessary property repairs.
The importance of a rental ledger for tenants
When applying for your next rental property, a rental ledger that shows you have paid your rent on time is always beneficial.
A rental ledger is a complete statement (or record) of every payment that you have made within your rental period. It is also a useful form of documentation if a matter ever needs to go before a court.
A rental ledger is relatively easy to read. Every line in a ledger provides a space where the property manager or landlord records when a payment has been made, how much, name and address.
If a payment was made late or if there was some other issue, the property manager/landlord will most likely note this. Being provided with a receipt protects both parties and you should keep these receipts to minimise any discrepancies between transactions.
Maintaining a rental ledger can be an advantage as a tenant. If there are ever rental disputes in regards to payment, this should be your first point of call. Comparing these with your landlord’s records to ensure they match is also worthwhile if it ever comes to this, but only if that is alright with your landlord.
Property managers normally use a rental management software to manage these ledgers.
Why you should ask for a copy of your rental ledger
It’s a good idea to keep an updated copy of your rental ledger. It can provide you with a record in the event there’s a dispute about your rental payments.
When you apply for a new property, a rental ledger is one of the most valuable documents you can have. When you submit an application, present your ledger to a prospective property manager/landlord to show your good rental payment record.
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