If you own or manage a rental property, you be wise to provide a tenant a receipt once he makes a rental payment. Many countries need landlords to produce a rent receipt every month. The receipt provides a tenant the simplest way to prove that he/she paid rent within the event of a dispute. Tenants can even use the receipts as proof of payment and the landlord has proof of payment for his own accounting records.
How to make a rental receipt?
1. Get a rental payment from your tenant. This can be done on a monthly basis, and you’ll receive this in cash or bank transfer or what you want. In most cases this is an automated payment.
2. Go to ReceiptofPayment.com and fill in the fields to create a rent receipt. Fill the required data (period of rent, any taxes and the credential of the landlord and tenant). Also state how the payment was received (Bank transfer, Paypal, Cash). A rent receipt ought to embrace the date of payment. An alternative way of creating an online Rent Receipt and to download a rent receipt is buying a rent receipt book and filling out the receipt by hand, this is a hassle because you have to scan it to digitalize it and you have to fill it over and over again.
3. Save the Rental Receipt for your records. If you send the receipt by email a copy is in your mail and on you can save it on your pc. If you fill out a paper receipt, you’ll create a photocopy or just file the copy.
Is it required to send a rental receipt?
No.
That is, no unless:
The agreement states that the owner can offer a replica of a receipt, or
State law needs that the owner offer a replica of the receipt.
In general is a rental receipt a proof of payment. So especially when the payment is in cash it is wise to give a rental receipt. When the payment is digitalized it creates a digital path, but even then it is not clear where the tenant paid for. So creating a receipt for rental is always a wise thing to do. For the tenant it is even more important because he has proof of payments and what is paid for. For example, when you make your first payment it sometimes include a fee or an extra month. You should write it down in the agreement that a receipt for payment is given as a proof. So incorporate this in the lease.