Rental Invoice Template

What is a Rental Invoice Template?

A rental invoice is a document that property owners and managers use to bill tenants for rent and related charges. Invoicing templates provide features such as customisable fields, automated calculations, and a professional layout – making invoice creation quick and easy. 

Rental invoices should include these key elements:

• Property details
• Rental period
• Payment terms
• Breakdown of charges

Who Needs a Rent Invoice Template?

Anyone renting out property or equipment will need to issue invoices for rent to communicate costs and keep accurate records. Consistent rental invoicing is also important for staying tax-compliant. 

Rental invoice templates are useful for people such as:

• Landlords managing residential or commercial properties who need to maintain professional records
• Property managers overseeing multiple properties and needing to track payments across different units
• Real estate agencies handling rental properties on behalf of property owners
• Business owners who lease equipment or vehicles
• Property investors managing short-term holiday rentals
• Tenants who sublease their properties 

Types of Rentals That Need Invoices

Here’s a quick overview of the types of rentals that commonly require invoices:

• Residential rentals: Long-term leases for apartments, townhouses, single-family homes, or duplexes.
• Short-term rentals: Vacation homes, cottages, cabins, and other properties listed on platforms like Airbnb.
• Commercial properties: Office spaces, car spaces, retail shops, and warehouses rented to businesses.
• Vehicle and equipment rentals: Cars, tools, or machinery leased for personal or business use.

It’s important to note that in Australia, rental income can come from property or business operations. According to the Australian Tax Office (ATO), the difference depends on the type of services provided: 

• Rental income: If you’re offering basic services like utilities, parking, and laundry, the income is generally considered property rental income.
• Business income: If you provide extra services such as cleaning, catering, or security, your operation might be classified as a business. The more services offered, the more likely it falls under business income.

Regardless of classification, providing clear and professional rental invoices will help you maintain your records and track payments.

How to Use Our Rental Invoice Template

Creating an invoice for rent doesn’t have to be complicated. Here’s a step-by-step guide to completing our invoice for rent template:

1. Add basic details:

• Invoice number: Assign a unique number for internal tracking
• Invoice date: Record the date the invoice is issued
• Payment due date: Clearly state when payment is due

2. Include contact information:

• For landlords: Provide your name, address, and contact details
• For property managers: Add your business name, address, and contact details

3. Specify rental details:

• Rental type: In the “Item Name” field, describe the item or property being rented (e.g., townhouse, equipment, or car) and include the property address
• Rental period: In the “Description of Item” field, state the length of the rental period (e.g. 7 days)
• Quantity: Note how many rental periods are being charged
• Unit rate: State the cost per rental period (e.g. $500)

4. Cost calculations:

• Total cost: Calculate the subtotal for the rental period, factoring in the rate and quantity
• Deposits or prepayments: Deduct any deposits already paid to show the balance due

5. Summarise the invoice:

• Include the subtotal, the amount due with tax (after deposits), and the total balance.

How Much Should You Charge on a Rental Invoice?

When it comes to deciding how much to charge your tenants, there are a few things to consider. A good pricing structure will meet both your needs and your tenants' expectations.

Here are some factors to evaluate when pricing your rental:

• Market rates in your area (consult resources like Domain or RealEstate.com.au)
• Property location
• Amenities
• Local market conditions 
• Operating costs including council rates and strata fees

You should also consider your financial obligations such as mortgage repayments, maintenance costs, and property management fees. If you still aren’t sure how much to charge, it’s a good idea to seek professional advice from an accountant or property manager.

Should You Send a Rental Invoice to Your Lessee? 

Absolutely. A rental invoice provides a clear record of the transaction between you and your tenant. It includes details that are vital for accurate bookkeeping such as the amount due, the payment date, and confirmation of payment received.

These are the key benefits of invoicing:

• Provides official documentation of rental charges
• Helps track rental income for tax purposes
• Creates a clear paper trail for both parties
• Supports GST reporting requirements (if applicable)
• May be required for tenants' tax or rent assistance claims

When Should You Send Your Rental Invoice?

For transactions where payment is made upfront, issue the invoice at the time of payment. If payment is due later, send the invoice on the agreed-upon date so your lessee has sufficient time to process it.

Cloud-based accounting tools like QuickBooks Online make it easy to send invoices and receipts on time.

Why Should You Send Out a Rent Receipt to Tenants?

Providing tenants with rent receipts can keep your channels of communication open – and it’s good practice for financial record-keeping. A rent receipt serves as official proof of payment, helping to track rental income and provide a clear record for both parties. It also simplifies your accounting process, making tax time easier by providing an overview of rental transactions.

A rent receipt is also a record of revenue and expenses, which is crucial for claiming tax deductions. In Australia, landlords can deduct reasonable expenses incurred while earning rental income. These fall into two categories:

• Current expenses: Recurring costs like repairs to maintain the property in its original condition, deductible in the year incurred.
• Capital expenses: Long-term investments such as purchasing the property, legal fees, or buying furniture for the rental.

Deductible expenses include property management fees, maintenance and repairs, and utilities that may be noted on your rent receipts – so keep your records!

Ensure Your Rent Invoices Are Compliant

Australian tax laws require clear and accurate records of rental income and expenses. Here are some ways to ensure your rental invoices are tax-compliant:

• Include an ABN (if you're running a business)
• Show GST as a separate charge (if registered for GST)
• Meet ATO record-keeping requirements
• Comply with state-specific rental laws

Simplify Rental Invoicing With Accounting Software 

Save time and reduce stress with QuickBooks Online accounting software. We’ve made it easy to manage your rental invoicing thanks to our customisable templates and automated bookkeeping features. 

Download our free tools and templates today. QuickBooks helps you get paid faster so you can stay focused on growing your business.