Do you own a second home that you rent out? Are you a property manager for a rental complex? Maybe you manage a storage facility.
Regardless of the particulars of your rental company, navigating the legalities of the lessor/lessee relationship can be difficult. However, with this rental invoice template, you’ll know exactly what should be on your rent receipts and invoices.
What Items Should Be Listed on a Rental Invoice?
As the owner or manager of a piece of rental property, it’s important that you understand the responsibilities of your role, and those of the tenant, or lessee. There are critical aspects of the landlord/tenant or lessor/lessee relationship.
On your rental invoice or rent receipt, be sure to include:
– Your name and contact information
– For landlords of small property
– Your company name and contact information
– For property managers
– Your mailing address
– Rental dates
– Rental type
– Unit Rate
– Total Cost
Additional items, such as the date of invoice and invoice number, are helpful for internal record keeping. Also useful is a portion at the bottom of the rental invoice receipt marked for Internal Use Only. In this section, you can keep track of items such as when the lessee paid and what form of payment they used. This information is especially helpful during tax season.
If your rental is only for a few days (car, boat, or cabin), put the date rented in the Rental Date. Under Rental Type, specify what’s being rented, and for how long. In the Unit Rate cell, note how much the rental costs per day, week, or other period of time for which the specific rental is eligible. In Quantity, how many rental periods are being charged. Under cost, detail the total cost for that specific rental. Finally, note the subtotal, total due less any deposits, and the invoice balance.
How Much Should You Charge on a Rental Receipt Invoice?
According to Zillow, the average rent for a 2-bedroom apartment in Ontario, for example, is $1,668 per month. The average boat rental in Canada is around $300 per day, although there are several price points and hourly options. Storage rentals in Toronto average about $183.50 per month, with factors such as number of weeks needed and amount paid in advance altering the rate. Take into account the type of your rental, location, rental term, and more to determine your rate.
Should You Send a Rental Invoice to Your Lessees?
In short: yes. A rental receipt invoice is proof for both parties that a transaction has taken place, the amount of the transaction, and if and when the amount has been paid.
When Should You Send a Rental Receipt or Rental Invoice to Your Tenant or Lessee?
The invoice for a transaction in which monies are paid upfront should be issued at the time of payment. If payment is expected at a later date, send the invoice on the date the leasing party has been told to expect to receive it. To keep track of these future invoice dates, cloud-based accounting tools such as QuickBooks invoicing software can help you ensure everything runs smoothly.