These Prepayments are weird to me

[Eric Boyd]

 I think I'm gonna turn off the prepayment function.  It's not behaving in a manner that makes sense to me.  (see attached pic)

Ok, tenant makes EFT payment on 8/31, which gets applied to Prepayments.  On 9/1, the Prepayment is applied to Rents.  On 9/6, EFT is reversed because of a bank issue with the tenant's account.  But, from what account does it reverse the payment?  PREPAYMENTS.  Ok, maybe that's because of where the EFT was originally applied, but now that I've received replacement funds from the tenant via certified check, and go to "Receive Payment", the account with a balance is the Prepayments account, instead of a rent account.  So, what happens next?  Does the system then automatically apply that Prepayments balance to the Rent Income account, after I post the payment?

This just seems so confusing.

- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Eric Boyd]

Aaand, here's what happened after I apply that payment.  I think Prepayments is broken.  Or, maybe I'm the idiot.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Mary Hurd]

Is the button there "apply prepayment deposit to balance"?

Mary Hurd

Owner, Property Manager

Rent Smart Property Management 

Sales Associate

Missoula Realty

 

www.rentsmartmissoula.com

www.facebook.com/RentSmartMissoula

www.linkedin.com/maryhurd

 

PO Box 1675

Missoula, MT 59806 

406-926-1724 Phone

406-317-1931 Fax

**This message may contain confidential and/or proprietary information and is intended for the person/entity to whom it was originally addressed.  Any use by others is strictly prohibited.**

 

 

 

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[Marlyn Corrigan]

I agree with you , it creates confusion on the tenants ledger. It does not show a credit balance on the tenants ledger. 

Marlyn Corrigan

Accountant
www.annapolispropertyservices.com
Ph: 410 570 5929 ~ office
Ph: 410 994 5876 ~ direct line 

Fax: 443 926 0102

On Mon, Sep 10, 2018 at 11:03 AM, Eric Boyd <eric.mic...@gmail.com> wrote:

Aaand, here's what happened after I apply that payment.  I think Prepayments is broken.  Or, maybe I'm the idiot.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918

mailto:EricBoyd@StepOneRealty.com

On Mon, Sep 10, 2018 at 9:06 AM Eric Boyd <eric.mic...@gmail.com> wrote:

 I think I'm gonna turn off the prepayment function.  It's not behaving in a manner that makes sense to me.  (see attached pic)

Ok, tenant makes EFT payment on 8/31, which gets applied to Prepayments.  On 9/1, the Prepayment is applied to Rents.  On 9/6, EFT is reversed because of a bank issue with the tenant's account.  But, from what account does it reverse the payment?  PREPAYMENTS.  Ok, maybe that's because of where the EFT was originally applied, but now that I've received replacement funds from the tenant via certified check, and go to "Receive Payment", the account with a balance is the Prepayments account, instead of a rent account.  So, what happens next?  Does the system then automatically apply that Prepayments balance to the Rent Income account, after I post the payment?

This just seems so confusing.

- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918

mailto:EricBoyd@StepOneRealty.com

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[Elm Management Group, LLC]

as one who like the feature once you put it in when you are in the tenant ledger screen you should see at the top apply repayment now. Just click that button and it is taken care of.

Andie Stephenson

Broker/Property Manager/Notary

"We Love Referrals"

Elm Management Group, LLC              
Owner/Broker                                                    

9205 W. Russell Road #240                          

Las Vegas, NV 89148                           

702-840-7641 office                      

702-832-5541 fax        

702-960-4646 cell                   

an...@elmmanagementgroupllc.com
Website: http://www.elmmanagementgroupllc.com

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[Elm Management Group, LLC]

No your are not a idiot.  it is proper accounting procedure but unless you have a bookkeeping or accounting background  it will seem wrong.

Andie Stephenson

Broker/Property Manager/Notary

"We Love Referrals"

Elm Management Group, LLC              
Owner/Broker                                                    

9205 W. Russell Road #240                          

Las Vegas, NV 89148                           

702-840-7641 office                      

702-832-5541 fax        

702-960-4646 cell                   

an...@elmmanagementgroupllc.com
Website: http://www.elmmanagementgroupllc.com

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[Eric Boyd]

Mary, I've seen a blue link on other ledgers where a prepayment is available, and [I believe] that let's you apply it to something.  But, that link is not on this ledger.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Eric Boyd]

Andie,

No, that link isn't there.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Eric Boyd]

Here's another example of my confusion with Prepayments.  Tenant inadvertently paid twice on 8/30.  They emailed me the same day, and admitted the new "format" confused them, which is why they submitted it a 2nd time.  I told them that they could tell their bank to refuse the payment, so they did.  It got reversed today.  So, what happens on the ledger?  It leaves an outstanding balance on the 'Prepayments' account.

Am I to presume that the next payment made will be applied to the Prepayments account, instead of the Rent Income account?  Technically, the tenant should have a zero balance right now.  But, because of how Prepayments seem to work, they still owe $900.  What if the tenant pays next month's rent before the 1st, which is their pattern.  Will that satisfy the outstanding balance on the Prepayments account, leaving nothing to apply to the Rent Income account, come Oct 1st?

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Mary Hurd]

I had this exact same thing happen. I think I solved it by deleting the transaction that applied it to prepayments. 

Mary Hurd

Owner, Property Manager

Rent Smart Property Management 

Sales Associate

Missoula Realty

 

www.rentsmartmissoula.com

www.facebook.com/RentSmartMissoula

www.linkedin.com/maryhurd

 

PO Box 1675

Missoula, MT 59806 

406-926-1724 Phone

406-317-1931 Fax

**This message may contain confidential and/or proprietary information and is intended for the person/entity to whom it was originally addressed.  Any use by others is strictly prohibited.**

 

 

 

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[Eric Boyd]

Yes, I know that we can easily delete the prepayment charge.  But, I don't like how this has created additional work for us, in addition to the unnecessary confusion for the tenant.

By the way, I looked at the tenant portal for this one, and it just makes things worse.  (see attached) In TWO places, it says his balance due is $900, and the transaction history shows a zero balance.  (I've already emailed him to tell him not to worry that we've misapplied any funds.)

 

- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Mary Hurd]

You should email that to Buildium, too, to let them know all the problems this is creating.

[Eric Boyd]

Ticket submitted.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Eric Boyd]

Here's the explanation from Support:

When a prepayment is received, the system will automatically add a charge to offset the payment. The prepayment will then apply towards to the rent charge automatically on the rent due date. However, if the payment reverses, there will be a balance on prepayments instead of rent income. 

 The system automatically adds prepayment charges but it does not automatically remove them if the payment reverses. 

The ledger must then be edited, and the charge for prepayment and applied deposit for rent income must be removed depending on the situation. 

Additionally, if the reversal was due to an extra payment, you will only have to remove the prepayment charge.   

 

So, is this more trouble than it's worth, keeping prepayments active?

- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Mary Hurd]

How many double payments and NSFs do you get a month? It was kind of a hassle for me, too, but dealing with moving around prepaid rent liability all the time is almost a bigger p.i.t.a. I wish they could get this straight so it is accurate and efficient.

[Eric Boyd]

I don't get them every month.  Maybe once every 2nd or 3rd month.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Mary Hurd]

Thats not bad. I got hit with two multi payments this month. Normally doesn't happen very often.

[Eric Boyd]

To be honest, I think the multi-payment issue could be easily resolved if these prepayment entries were completely suppressed from tenant view.  I don't know how difficult it is to program that on the back-end, but there's just no reason why a tenant needs to see that.

 
- -
Eric M. Boyd, Owner/Broker
Step One Realty, LLC
Jacksonville, FL
Residential Sales and Property Management
http://www.StepOneRealty.com
cell: 904-813-5010 fax: 904-309-9918
mailto:Eric...@StepOneRealty.com

[Kristina Conard]

I agree with you Eric.  I just had this happen also....someone paid on the 31st and then received an NSF a few days later.  My owner was so lost and frustrated because he didn't understand the accouting.

To add to that....when I did close out, Buildium did not include my percentage of the rent in my management fee.

SO Frustrating!

Kristina Conard

Keller Williams Diamond Partner

KC Rental & Realty

kcrr...@gmail.com

(913) 710-7391 cell