Those located in Asia-Pacific will use the term Trust Account, where customers located in Europe will use the term Client Account. For more information on regional terminology, refer to this article.
Here is the process to follow for ending management in a Client / Trust Account:
|1. Process all bank statement items related to the property and tenants|
2. Handle any outstanding Bonds for each Tenant - Refunding Bonds/Deposits held in the Client/Trust Account,
Refunding Bonds/Deposits held by the Property Owner and Refunding Bonds/Deposits held by an Authority or Interest Bearing Account
3. Vacate each tenant. Ensure that you use the Current Paid to Date as the Vacate Date, otherwise it creates a credit note which it will try
and refund to the tenant. Refer to Ending or Vacating a Lease/Tenancy. Also by using the Current Paid to Date, the system will prompt to
allocate Credit Notes to clear any Invoices billed past this date.
|4. Credit off any outstanding Invoices which aren't expected to be received. Refer to Income Credit Notes.|
5. Use Notes to record the management lost. Plus at the property level, if you're tracking the KPI management,
record the property loss on the Property Details page.
|6. Run all relevant reports. This should be supplied to the new agent. Reports such as Tenancy Schedule, contact list should be enough.|
7. Run a Disbursement for the owner/or new agent include the Owner's Statement. If you are holding any funds and needing to provide it
to the new agency, you may update the Bank Account number under the Ledger > Edit Ledger > Add Bank Details, and set as Default.
|Once all fees are collected and funds have been paid out and everything resolved with the owner and tenant, then proceed with the next steps:|
|8. Run a Financial Summary Report for the owner under Reports > Trust Accounting > Financial details|
|Once everything is resolved with the Property and Tenant:|
|9. Archive the Tenancy (verify Tenancy Ledger has a zero balance).|
|10. Archive the Tenant's Ledger via Ledger > Edit Ledger > Archive.|
11. Archive the Owner's Ledger. If there are multiple Ledgers associated with the 'Owner Contact', a Ledger must be specified as the
Default Ledger for 'Owner Fees'. It is suggested to either Archive the Ledger set as the Owner Fees last or designate another Ledger
to be the default). To locate all Ledgers associated with this Owner, run the Ledger Summary Report and use the Cntrl-F to search by
the Owner Contact Name.
12. Archive the Property - be sure to void any unpaid expense invoices. Please note, if you choose to Archive, it'll be accessible to restore
via the Restore tabs under Properties, Tenancies and Client/Trust Account Ledgers.
|13. Archive the Contact(s), if no longer needed.|