If you have a property that accepts Section 8 rent payments as part of the total monthly rent for a property, Rentec’s program offers an easy way to track both the charges and income received separate from your tenant’s.
The first part of the set-up requires you define a new income category. To do so, head to your Settings tab and select “Setup Categories.” Select “Add new Category” in the lower left portion of the screen. (You can either let the program choose a category number for this new income code you can pick a custom number.)
Now that you have your income code created for Section 8 payments, you will want to establish the rent division between Section 8 and the tenant. To do this, the program has you create a roommate scenario for this property, with one roommate being the actual tenant and the other roommate being Section 8. This will track rent charges and income received separately in individual ledgers yet reflect both payments in one property ledger. By posting respective rents to separate income codes, you will also be able to pull delinquency reports and know if the tenant or the Section 8 portion of rent has been paid. To learn more about how to enter roommates into the program, click HERE.
Now for entering in the roommate. For the actual tenant, move them into the property like you normally would – through the Property tab, by clicking on “Place New Tenant.”
From the “Place New Tenant” screen, you will want to list the rent charge to be only the tenant’s portion of rent. Same applies to deposits, late fees, etc. Here is an example:
Once you’ve added your tenant to the property, you will want to add Section 8 as the roommate. Follow the steps you did above for placing a new tenant, except in this instance, use the information related to Section 8 only.
We recommend you use the tenant’s last name in the Section 8 set-up and the first name of “Section 8”. This will make it easy to find both on the Tenant tab. Be sure to indicate whether or not you will charge Section 8 a late fee, if the grace period applies and any other details that do or don’t apply to Section 8.
When you head into your tenant tab, you will see both the regular tenant ledger and the Section 8 ledger related to this tenant.
When you receive rent payments for this property, be sure to enter the payment into the appropriate ledger and selecting the appropriate income category.
**** If you need to adjust the tenant’s rental amount, head to the Settings tab, select Recurring Transactions, find the recurring transaction you need to adjust and select the pencil/paper icon next to their monthly charge. Be sure to only change the rental amount from this screen so as to not accidentally adjust any other system defaults.