UK- Landlords How To Collect Rent On Time (2/10)

At least 21 days before the rent is due send out an invoice to the tenant.

The invoice should clearly state the following;

1) The total rent due and show the split on the invoice between the Net,Tax and Gross.

2) The due date.

3) Tax registration number should be on the invoice (if applicable).

4) The billing name should be exactly the same as the name of the tenant on the lease or as varied by associated documentation.

5) The dates the invoice relate to (i.e Rent due for period 25.12.2006-24.03.2007). The billing address should be the address where the tenant wants it to be sent (unless the lease states otherwise). Speak to the principal and establish this in advance of raising the invoice. Tenants can want the invoice sent to a third pary not limited to one of the following, Managing Agent, Accountant, Head office, Leased premises,Home address, PO BOX. This is not a problem as long as they confirm change of address in writing and as long as the invoice is billed to the name of the tenant on the lease c/o XYZ Managing Agent,ABC Town,FR8 2FC.

6) "Issued by" details which show the billing entity and explaining (where applicable) the relationship to the landlord or stating that the invoice was raised by the landlord.

7) Unique Invoice number.

8) Where to send payment.

9) How to pay (by Cheque, BACS, TT).

10) Remittance advice or tenant reference code should be enclosed so that the tenant can send this with his payment so that you can ensure that when the money is received by you you are able to allocate to the correct tenant account.

Getting one of the above wrong can cost you in numerous ways and will likely result in a delay meaning you not getting paid on time.

14 days before the due date make a courtesy phone call to your tenant and confirm with them that they have received the invoice. Confirm with them that the invoice is in the payment run and that they anticipate no problems paying the rent by the due date. Make a detailed file note of what date and time you called and the full name of who you spoke to, their position, along with their telephone number and office location. Now is the time to eliminate now any potential payment delay at the tenants end. This is proactive management of your property Investment.