A Rent Receipt is a very commonly used document that proves that a tenant has made rent payment and the landlord has received it. This document although is legal and can be used in a lawsuit, still it is so simple that anyone can prepare it. Generally speaking, a piece of paper that says 1st party being the tenant have given specified amount to 2nd party being landlord against the rent of the said month and it has signature of both parties, it’s enough to hold in any court. But, it’s always better to use a professional design especially for payment receipts.
Importance of Rent Receipts:
When it comes to any kind of receipts especially when money is involved, there has to be some legal proof of the transaction and a rent receipt doesn’t have immunity either. There can be number of benefits and important aspects of having a rent receipt from the perspective of the tenant and the landlord. First of the fact is that when a tenant has paid his rent for the current or previous month, he should have some kind of proof that the landlord has received the rent and is not going to falsely accuse him with the overdue amount. When rent is paid and there is the receipt, the landlord needs to sign it acknowledging that he has in fact received the payment and there is no overdue amount towards the tenant.
When we talk about the importance of rent receipts from the perspective of the landlord, there is the fact that even if you rent your property, you still give property tax and some countries give discount or have special offers for landlords giving them concession in the tax payments. When you have copies of rent receipts, these can be presented as an important and a must document during tax payment process. Another scenario is when you get regular payments from tenants in your account, IRS or other government department might get suspicious about the regular payments and they might pay a visit to you asking for the source of income. At that time when you would state that these payments are coming from your tenants, along with other documents i.e. property ownership document and rental agreements, they would also require to see rent receipts.
Free Printable Rent Receipt Templates
Here are several free Printable Rent Receipt Templates in MS Word, MS Excel and in PDF Format.
Guidelines to prepare a Rent Receipt:
An official rent receipt always starts with mentioning the name(s) of the tenant(s) who occupy the building. This part should be very clear as it needs to state full names of all tenants along with their permanent addresses, social security numbers, their employment details and nationality details in case they are foreigners.
The next part of the rent receipt would be where you will give details of the landlord. It’s a simple portion of the receipt that would include full name of the landlord, his address and contact details, employment and the fact that he is the owner of the building or just a landlord hired by the original owner to look after the building and tenants.
Building or property details:
The rent receipt would be considered incomplete if it doesn’t include any details or specifications of the building that is under discussion. It might not seem to be important in general but if there is ever a scenario where either party sues the opposite; the rent receipt shouldn’t have any grey area. For that purpose, it’s important to clearly mention address of the property, type of property and further details i.e. area etc.
Details of the rent:
This might be the most important part of the rent receipt as it will include accurate figure of the rent payment both in words and numbers. Other things to mention here would be the month of the rent payment and the date on which rent payment is transferred to the landlord.
Signature of both parties:
At the end, the bottom of this document would include signatures of both the landlord and the tenant acknowledging that they agree to whatever is stated in the receipt. Although it’s not standard but getting signature of one or two witnesses couldn’t harm anyone.