This article describes how to explain rental income that has been refunded to a tenant.
If you have an unincorporated landlord account and have refunded rental income to one of your tenants, you should follow the steps below to explain the bank transaction once it has been imported into your FreeAgent account via a bank feed or uploaded from a bank statement.
Please note that the unincorporated landlord account type is currently only available if you work with an accountant who is a FreeAgent Partner. You’ll need level 7 access or above to your FreeAgent account to follow the steps below.
If you have received rental income from one of your tenants, find out how to record rental income for a property.
Explaining the money paid into your bank account
Navigate to the ‘Banking’ tab at the top of the screen and select ‘Bank Accounts’ from the drop-down menu.
Choose the relevant bank account from the list.
Select the transaction that relates to the rental income refund.
Select ‘Rental Income Refund’ from the ‘Type’ drop-down menu.
Select the relevant property from the ‘Properties’ drop-down menu.
Select ‘Explain Transaction’ to complete the process.
A record of the bank transaction being explained will appear in your Audit Trail report.
Find out how to view a breakdown of the rental income allocated to a property and its overall profitability.